The value of the cash coverage ratio is 2.72
The value of Earnings Before Interest and Taxes(EBIT) is :
= Interest paid * times interest earned ratio
= $(2,380 * 2.4)
= $5,712
The cash available for settling the interest expenses is :
= EBIT + depreciation expense
= $5,712 + $760
= $6,472
The cash coverage ratio is :
= Cash available for settling the interest expenses/interest paid
= 2.72