Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
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


Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.