Debt Service Coverage Ratio

Formula to calculate debt service coverage ratio: Debt Service Coverage Ratio = net operating income / (interest + current portion of LTD) Debt service coverage ratio definition and explanation: The debt service coverage ratio is also known as the debt Read More

Cash Flow Coverage Ratio

Formula to calculate cash flow coverage ratio: Cash Flow Coverage Ratio = net income + depreciation and amortization/total debt payments. Cash flow coverage ratio definition and explanation: The cash flow coverage ratio indicates the ability to make interest and principal Read More

Times Interest Earned Ratio

Formula to calculate times interest earned: Times Interest Earned Ratio = (net income + interest) / interest. Times interest earned definition and explanation: The times interest earned ratio indicates the extent of which earnings are available to meet interest payments. Read More

Bad Debts Ratio

Formula to calculate bad debts ratio: Bad Debts Ratio = bad debts / accounts receivable. Bad debts ratio definition and explanation: The bad debts ratio is an overall measure of the possibility of the business incurring bad debts. The higher Read More