Which of the following is NOT added back to Net Profits After Taxes to produce the numerator in Coverage Ratio? profits taxes interest on debt cost of materials depreciation profits taxes interest on debt cost of materials depreciation Solution Which of the following is NOT added back to Net Profits After Taxes to produce the numerator in Coverage Ratio? cost of materials Note : Interest Coverage Ratio = EBIT/Interest Expenses EBITDA Coverage Ratio = (EBITDA + Lease Payments)/(Interest Payments + Principal Repayments + Lease Payments) Therefore only cost of materials is not added back to Net Profits After Taxes to produce the numerator in Coverage Ratio.