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Subject:  ebitda/cash tax paid Date:  8/20/2002  4:21 PM
Author:  solasis Number:  222 of 297

analysis by me shows that ratio of ebitda to cash actually paid to IRS for tax year immediately preceding all publicly listed companies on nyse that have declared bankruptcy since 1990 shows clear pattern

min 6.9
maximum 42.4
mean 13.5

Worldcom 2001 net earnings: $1.5 billion. Worldcom cash taxes paid 2001: $148 million.
Enron 2000 net earnings: $1 billion. Enron cash taxes paid for 2000: $60 million.

ebitda/cash tax ratio above 7 a clear warning signal. even for co's with large depreciation hard to make numbers work above 7:1


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