2
2.7182818284590...
REVENUE________ 1.00000000
COGS_EXPENSE___ 0.73653587
GROSS_PROFIT___ 0.26346413
EBITDA_EXPENSE_ 0.96698689
EBITDA_________ 0.03301311
EBIT_EXPENSE___ 1.08160911
EBIT___________ -0.08160911
TOTAL_COSTS____ 1.10018924
NET_PROFIT_____ -0.10018924
Since these companies don't pay taxes, their total interest payments
are only 1.84% of revenues. Therefore, a financially distressed
company is mostly caused, not by high interest payments, but by very
high fixed costs, such as COGS and S&M/Marketing/R&D.
COGS_EXPENSE___ 0.73653587
GROSS_PROFIT___ 0.26346413
EBITDA_EXPENSE_ 0.96698689
EBITDA_________ 0.03301311
EBIT_EXPENSE___ 1.08160911
EBIT___________ -0.08160911
TOTAL_COSTS____ 1.10018924
NET_PROFIT_____ -0.10018924
Since these companies don't pay taxes, their total interest payments
are only 1.84% of revenues. Therefore, a financially distressed
company is mostly caused, not by high interest payments, but by very
high fixed costs, such as COGS and S&M/Marketing/R&D.