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Debt Service Ratio and Debt Coverage Ratio mean the same thing.
To calculate,
* Add back any interest expense to get 'Cashflow Available to Pay Debt'. * Divide Cashflow Available to Pay Debt' by the debt payments for the period. * An answer of 1.0 or better means there is just enough cashflow to cover the debt. * Most lenders want to see 1.2 to 1.3 for a business Example:
Net Income for the year
$5,000 after a deduction of $10,000 interest expense.
Debt payments of $1,200 per month. ($1,200 x 12 =$14,400 per year)
Cashflow Available to pay Debt
$5,000 plus $10,000 equals $15,000.
Debt Service Ratio:
$15,000/$14,400
1.04
Probably not enough to keep the commercial lenders happy.
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∙ 16y ago
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What is the debt ratio is total assets are 136000 equity is 31000 current liability is 24000 and total liabilities are 105000?
Debt to Equity ratio =Total liabilities / equity Debt to equity ratio = 105000 / 31000 = 3.387
How do you calculate the book value of debt?
the principle of debt + the interest accrued
What is a useful measure of solvency?
Debt to total assets ratio
What advantage does fixed charge coverage ratio offer using times interest earned?
This is a very open ended question that implies one does not understand the purpose of the ratio and I see no advantage to any ratio over another. A ratio simply measures the variables inputted. The Fixed Charge Coverage Ratio ("FCCR") reflects the amount of cash (or EBITDA) left after paying for unfinanced capital expenditures, dividends (or distributions) and cash paid taxes then divided by the "fix charges" or the sum of the past period's cash interest and required payments on long term debt or also know as the current portion long term debt ("CPLTD"). In my opinion to answer the question; the advantage of this ratio over the use of an Uniform Cash Flow Analysis ("UCA") Debt Service Coverage ("DSC") is simply the starting point of EBITDA vs. net income. EBITDA is more commonly used in larger credit facilities as a component of ratios or covenants measurement. Also a very similar ratio is Free Cash Flow ("FCF") divided by Total Debt Service ("TDS") or FCF/TDS.
How do you calculate the Bad Debt Expense on the income statement report?
credit the account receivable and debit the bad debt expense.
How do you calculate debt service coverage ratio of a firm?
Debt Service Coverage Ratio = Interest payable on debt/Net Profit
How do you calculate excel sheet in Debt-Service Coverage Ratio - DSCR?
bo bo
How do you calculate Microsoft Excel sheet Debt-Service Coverage Ratio - DSCR?
Calculating DSCR in Excel sheet
What Is A Debt Coverage Ratio?
It’s a ratio among Net Operating Income and the debt service. It's used to determine profitability after paying debt service.
How to calculate Historical debt service coverage ratio?
Net operating Income/Total debt service Total debt servide-cash reuired to pay out interest as well as principal on a debt Net operating Income/Total debt service Total debt servide-cash reuired to pay out interest as well as principal on a debt
How do you calculate Long-term debt ratio?
slowly.
can I use a debt ratio calculator to see how much debt I am in ?
Not exactly, debt ratio calculators calculate your debt as a ratio to your income. You should try an outlet like www.money-zine.com/Calculators/ to find the right calculator for you.
What is meant by DSCR.?
Debt Service Coverage Ratio
Is there an online debt ratio calculator?
Money-zine (www.money-zine.com) hosts a debt ratio calculator on their website. Simply complete the online form, click on the Calculate button and your debt ratio is instantly provided.
What best describes a bank's Texas Ratio?
Texas Ratio FormulaTo calculate the Texas Ratio, you divide a bank's bad debt on the books by the amount of money it has to absorb the bad debt.
How do you calculate DBR?
The way to calculate DBR (Debt Burden Ratio) is to take all of a persons debt burden and add it together. Next, divide that debt burden by the after-tax income. This is the DBR.
How do you calculate depth service coverage ratio?
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