Glossary

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Debt Service Coverage: Finance statistic. Cash Available for Debt Service, divided by Required Debt Service.

Debt-to-Worth Ratio: Finance statistic. Total Liabilities, divided Owners' Equity.

Depreciation (Net): Balance Sheet-related account. A period cost of operations reflecting the decline in the value of Plant, Property and Equipment due to use and the passage of time. (The amount is net of reductions in Accumulated Depreciation resulting from disposals of Property, Plant and Equipment)

Dividends: Balance Sheet-related account. A distribution to the owners of a business of either cash or securities.

Dividends as % of Net Earnings: Finance statistic. Dividends, divided by Net Earnings.

Earnings Before Income Taxes: Statement of Net Earnings statistic. Net Earnings, plus Income Taxes.

Earnings Before Income Taxes as % of Net Sales: Statement of Net Earnings statistic. Earnings Before Income Taxes, divided by Net Sales.

Earnings Per Share: Finance statistic. Net Earnings, divided by Common Shares Outstanding (Fully Diluted).

EBITDA: Finance statistic. Net Earnings, plus Interest Expense, plus Income Tax Expense, plus Depreciation, plus Amortization of Intangible Assets.

EBITDA as % of Net Sales: Finance statistic. EBITDA, divided by Net Sales.

EBITDA Coverage of Required Debt Service: Finance statistic. EBITDA, divided by Required Debt Service.

EBITDA Coverage of Senior Interest Expense: Finance statistic. EBITDA, divided by Senior Interest Expense.

EBITDA Coverage of Total Interest Expense: Finance statistic. EBITDA, divided by Total Interest Expense.

EBITDA Minus Capex, Divided by Required Debt Service: Finance Statistic. EBITDA Minus Capex, divided by Required Debt Service.

Equity Investors' Original Equity Investment: Finance statistic. From the buyers' point of view, the estimated investment in Common Stock required in order to accomplish the Leverage Buy Out (LBO) of a business.

Equity Investors' Pretax Annual Rate of Return: Finance statistic. Internal rate of return earned by Equity investors' on the Equity Investors' Original Equity Investment in a Leverage Buy Out (LBO) of a business.

Equity Investors' Pretax Annual Rate of Return Objective: Finance statistic. Internal rate of return obective on the Equity Investors' Original Equity Investment in a Leverage Buy Out (LBO) of a business.

Estimated Amount Available to Borrow: Finance statistic. Borrowing Base Assets (i.e., Accounts Receivable; Inventory; and Plant, Property and Equipment) times the applicable Borrowing Base Percent.

Estimated Borrowing Base %: Finance statistic. Percent of asset values of Borrowing Base Assets on which banks and other lenders base their eligible loan amounts.

Estimated Borrowing Base as a % of Property, Plant and Equipment (Net): Finance statistic. Estimated percent of Property, Plant and Equipment (Net) a bank willing to lend to a business if the business pledges the Property, Plant and Equipment (Net) to the bank as collateral for a loan.

Estimated Borrowing Base as a % of Accounts Receivable: Finance statistic. Estimated percent of Accounts Receivable (net of disallowed or past due accounts) a bank willing to lend to a business if the business pledges the Accounts Receivable to the bank as collateral for a loan.

Estimated Borrowing Base as a % of Inventory: Finance statistic. Estimated percent of Inventory (net of Inventory reserves) a bank willing to lend to a business if the business pledges the Inventory to the bank as collateral for a loan.

Estimated Gross Amount of Senior Debt Available: Finance statistic. Borrowing Base Assets (i.e., Accounts Receivable; Inventory; and Plant, Property and Equipment) times the applicable Borrowing Base Percent.

Estimated Net Amount of Senior Debt Available: Finance statistic. Estimated Gross Amount of Senior Debt Available, minus Senior Debt Outstanding.

Estimated Net Bank Borrowing Availability: Finance statistic. Estimated Gross Amount of Senior Debt Available, minus Senior Debt Outstanding.

Fixed Asset Turnover: Finance statistic. Net Sales, divided by net Property, Plant and Equipment.

Free Cash Flow: Finance statistic. Net Earnings, plus Depreciation, minus Capital Expenditures, minus Dividends.