Ratio Calculation
This query is : Resolved
05 October 2022
Hello All
Happy Dussehra!
Pl let me know how to calculate the DEBT SERVICE COVERAGE RATIO WITH EXAMPLES.
Let suppose my co's unsecured loans and secured loans are 100000/- then how to calculate the ratio . In operating Income what should I include.
Pl guide.
Regards
Happy Dussehra!
Pl let me know how to calculate the DEBT SERVICE COVERAGE RATIO WITH EXAMPLES.
Let suppose my co's unsecured loans and secured loans are 100000/- then how to calculate the ratio . In operating Income what should I include.
Pl guide.
Regards
05 October 2022
Debt Service Coverage is usually calculated using EBITDA as a proxy for cash flow. Adjustments will vary depending on the context of the analysis, but the most common DSCR formula is:
DSCR Formula =( EBITDA-(cash taxes)/(principal+interest )
Where:
EBITDA = Earnings Before Interest, Tax, Depreciation, and Amortization
Principal = The total amount of loan principal due within the measurement period (often expressed as the current portion of long-term debt or CPLTD).
Interest = The total aggregate amount of interest due within the measurement period, calculated on both the current portions and the non-current portions of long-term debt.
Cash Taxes = The proportion of total income tax that’s due in cash during the current measurement period.
DSCR Formula =( EBITDA-(cash taxes)/(principal+interest )
Where:
EBITDA = Earnings Before Interest, Tax, Depreciation, and Amortization
Principal = The total amount of loan principal due within the measurement period (often expressed as the current portion of long-term debt or CPLTD).
Interest = The total aggregate amount of interest due within the measurement period, calculated on both the current portions and the non-current portions of long-term debt.
Cash Taxes = The proportion of total income tax that’s due in cash during the current measurement period.
05 October 2022
Sir
Thanks for the reply. But for further understanding Can u explain with example...
Regards
Thanks for the reply. But for further understanding Can u explain with example...
Regards
05 October 2022
See the link
https://propertymetrics.com/blog/how-to-calculate-the-debt-service-coverage-ratio-dscr/
https://propertymetrics.com/blog/how-to-calculate-the-debt-service-coverage-ratio-dscr/
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- Treatment of Pension ?annuity returns on PMVY
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Sales return eway bill
- Free lancer income
- Loan by Partnership Firm
- TDS related Query_Liquidated Damages
- Long Term Service award taxability in hands of company
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
