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
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Debt Service Coverage Ratio = Interest payable on debt/Net Profit
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Calculating DSCR in Excel sheet
Debt Service Coverage Ratio
It’s a ratio among Net Operating Income and the debt service. It's used to determine profitability after paying debt service.
Adersely Classified Assets/Tier 1 Capital +Allowance
after tax
The provision coverage ratio is calculated by dividing the total provisions for bad debts by the total non-performing assets (NPAs). The formula is: Provision Coverage Ratio = (Total Provisions / Total NPAs) x 100. This ratio indicates the extent to which a bank's provisions cover its bad loans, reflecting its ability to absorb potential losses. A higher ratio suggests better financial health and risk management.
Interest coverage ratio, is net operating income + accrual/ interest That is whether the company can cater for the interest portion.
Formula to calculate the ratio
DCR in Real Estate means Debt Coverage Ratio (DCR) or Debt Service Coverage Ratio (DSCR) it is a widely used ratio in the case of buy-to-let property and in general in commercial real estate investment analysis. You can also review more information by visiting the link in "Related Links".