Debt Service Coverage Ratio = Interest payable on debt/Net Profit
(Non-interest operating Expenditure - Non-interest operating income ) / Average Total Assets A bank with a low burden ratio is more better off. An increasing trend would show lack of burden bearing capacity
The interest coverage ratio is the calculation that determines a company's ability to repay debt payments. It is this calculation that determines whether or not companies are able to obtain loans.
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(Non Interest Op Expenditure - Non Interest Income)/ Average Assets
Burden Coverage Ratio = EBIT/Interest Expense+[Principal Payment*(1-Tax Rate)
Interest coverage ratio, is net operating income + accrual/ interest That is whether the company can cater for the interest portion.
Debt Service Coverage Ratio = Interest payable on debt/Net Profit
(Non-interest operating Expenditure - Non-interest operating income ) / Average Total Assets A bank with a low burden ratio is more better off. An increasing trend would show lack of burden bearing capacity
(Non-interest operating Expenditure - Non-interest operating income ) / Average Total Assets A bank with a low burden ratio is more better off. An increasing trend would show lack of burden bearing capacity
Debt Service Coverage Ratio
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The ratio of provision against total NPA
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.
The interest coverage ratio is the calculation that determines a company's ability to repay debt payments. It is this calculation that determines whether or not companies are able to obtain loans.
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.
This ratio is used to determine how easily a company can repay the interest outstanding on its debt commitments. The lower the ratio, the more the company is burdened by debt commitments. When a company's interest coverage ratio is 1.5 or lower, its ability to meet its interest expenses becomes questionable. An interest coverage ratio of < 1 indicates that the company is not generating sufficient revenue to satisfy its interest expenses. Formula:ICR = EBIT / Interest ExpensesEBIT - Earnings Before Interest and Taxes