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

eg
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

tr

Print the post Back To Top
No. of Recommendations: 0
For 2001 Healthsouth reported $433.7 million in pre-tax income (GAAP) to its shareholder's.....taxes paid for 2001.....0.

tr
Print the post Back To Top