Clarity on Debt Service coverage ratio

aaash.ag
Posts: 7
Joined: Thu Oct 31, 2013 9:58 am

Clarity on Debt Service coverage ratio

Postby aaash.ag » Fri Jan 03, 2014 3:42 am

Still have some confusion. So please clarify the following :-
How to calculate NOI? What is considered to be NOI from the following?
1. EBITDA 2. EBIT or 3. EBIT (1-t)

Total Debt Service :- Does it consider only interest payment to long term debt? Please clarify with arguments if the following are not considered for calculating Total Debt Service:-
1. Loan Repayment or. 2. Interest on Short term borrowing

pradeeppdy
Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm

Clarity on Debt Service coverage ratio

Postby pradeeppdy » Tue Jan 07, 2014 5:56 am

We take EBIT as a income from operations. what it includes in calculation ;- Gross income(revenue) - operating expenses(COGS,Depreciation,Administrative expenses etc).

Total debt service includes regular payments on a loan or debt taken for the business purposes.and it include loan repayments, lease payments.

pradeeppdy
Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm

Clarity on Debt Service coverage ratio

Postby pradeeppdy » Wed Apr 02, 2014 8:44 am

NOI can be calculates as follows from the following :
1. ( EBITDA -D- A -I ) (1-t)
2. (EBIT-I) (1-t)

Total debt service include all kind of debt i.e. Long term liabilities . Interest payments, Current loabilities etc.


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