A comparative approach in the agro-food system in Italy Year: Q13, Q14, G31, G32 DOI: The interest coverage ratios ICRs are used to quantify the ability of firms to pay financial debts; ICRs are then considered by banks such as covenants in the financing term sheet, and are used by researchers and the rating agencies to estimate the probability of default of firms.

Typically, ICRs calculation is based on profit margins, such as EBITDA and EBIT; EBITDA and EBIT approximate, but do not directly express, cash flows available to pay financial debts. The article aims to evaluate whether there are significant differences in results using ICRs based on EBITDA or EBIT and ICRs based on different definitions of cash flow CF.

The application is made to a sample of firms characterized by high absorption of capital operating in the Italian agro-food sector. The article highlights that there are statistically significant differences using ICRs EBITDA and EBIT based and ICRs based on different CF definitions.

Supplement to Journal of Accounting Research, pp. XXXI 2 , pp.

Accruals, Free Cash Flows, and EBITDA for Agribusiness. Firms - PDF

The Relevance of Financial Statement Information for Executive Performance Evaluation and Equity Valuation: Evidence from the Choice of Bonus Plan Accounting Performance Measures, John M. Olin School of Business, Washington D. Journal of Finance, vol.

Earnings Management through Specific Accruals and Discretionary Expenses: Evidence from U.S. Agribusiness Firms - Trejo-Pech - - Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie - Wiley Online Library

XVIII 1 , pp. Financial Statement Analysis and Security Valuation, McGraw-Hill, London. Financial Assets and Investing [Faculty of Economics and Administration] [Institute for financial market].