24 November 2019
The ideal debt service coverage ratio would be 1.25 . But not less than 1.
Formula : EBIT OR EBITDA / Current year obiligations.
EBIT : Net profit before interest and taxt EBITDA : Net profit before Interest, tax and depreciation Current year obligations : Bank loan principal repayment in the current year and interest payable to loans during the current year
25 November 2019
We can tell about the ideal ratio generally applicable to industries and business. If you more specific your industry, i have no idea and please check in google.
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