EBIT to Interest Ratio shall have the meaning ascribed thereto in Section 5.03(l) hereof.

EBIT to Interest Ratio means the sum of earnings before interest and taxes divided by interest expense. This covenant shall be tested on a quarterly basis with the first test occurring March 31, 2000. Quick Ratio. Borrower shall maintain a Quick Ratio of not less than 2.00 to 1.00. "Quick Ratio" shall mean the ratio of the sum of cash plus cash equivalents plus marketable securities plus trade receivables (minus any bad debt reserves), whether or not evidenced by a promissory note, plus the current portion of any debt due to Borrower from Borrower's officers, employees, stockholders, affiliates or subsidiaries, to Current Liabilities. "Current Liabilities" shall mean all liabilities which are so classified in accordance with generally accepted accounting principles. This covenant shall be tested on a quarterly basis with the first test occurring September 30, 1999, Positive Earnings. Commencing with Borrower's first fiscal quarter ending March 31, 2000 and for each fiscal quarter thereafter, Borrower's earnings before interest, taxes, depreciation and amortization ("EBITDA") shall be positive. This covenant shall be tested on a quarterly basis with the first test occurring March 31, 2000. Limitation on Debt. Borrower shall not, directly or indirectly, create, incur, assume or become liable for any additional indebtedness, whether contingent or direct, which totals more than $25,000.00 in the aggregate at any time, without the express written consent of Bank.

Examples of EBIT to Interest Ratio in a sentence

Borrower agrees to the following provisions from the date hereof until final payment in full of the Obligations, unless Bank shall otherwise consent in writing: EBIT to Interest Ratio.
Borrower shall maintain an EBIT to Interest Ratio of not less than 1.50 to 1.00.
Borrower shall not permit the EBIT to Interest ratio ("EBIT to Interest Ratio") to be less than 2:1, tested quarterly as of the close of each fiscal quarter on a rolling four-quarter basis.
Borrower shall, at all times, maintain an EBIT to Interest Ratio of not less than 1.50 to 1.00.
The Borrower shall at all times maintain an EBIT to Interest Ratio, tested as of the last day of each of the Borrower’s fiscal quarters for the four (4) quarter period ending on that date, of not less than 3.50 to 1.00.

More Definitions of EBIT to Interest Ratio

EBIT to Interest Ratio means, during the applicable period, that quotient equal to EBIT, divided by Interest.

EBIT to Interest Ratio in respect of each fiscal quarter of the Guarantor, the Consolidated EBIT to Interest Ratio shall not be less than 3.00 to 1.00;

EBIT to Interest Ratio means, with respect to a fiscal period, a fraction, the numerator of which is equal to EBIT for such period, and the denominator of which is equal to the Borrower's interest expense on all Indebtedness for such period.

EBIT to Interest Ratio means, as to the Borrower and its Subsidiaries for any period of determination thereof, the sum of (a) the net profit (or loss) determined in accordance with GAAP consistently applied, plus (b) interest expense and income tax provisions for such period divided by interest expense for such period.

EBIT to Interest Ratio. For the Borrower as of any date of determination, the ratio of (a) aggregate EBIT to (b) aggregate Interest Expense, in each case for the most recently concluded four (4) fiscal quarters, commencing with the fiscal quarter ending March 31, 2013.