Ratio Analysis
Ratio Analysis: MeaningRatio analysis is a technique for evaluating financial statements or, to say, for detailed analysis of the financial statements presented by the… Read Article
Coverage Ratios
EBITDA Coverage Ratio – Meaning, Formula, Benefits, and More
EBITDA coverage ratio helps in determining the capability of a firm to repay its loan and lease obligations timely and smoothly. Such a ratio… Read Article
Importance of Ratio Analysis
Ratio Analysis is a method to understand the liquidity position, efficiency of operations, profitability position, and solvency of a business organization. It is a… Read Article
Asset Coverage Ratio
Meaning of Asset Coverage RatioThe Asset Coverage Ratio is a financial ratio that describes how well a company is in a position to repay… Read Article
Cash Flow to Debt Ratio – Meaning, Importance, Calculation
As the name suggests, the cash flow to debt ratio compares the total cash flow to the total debt due by the company. It… Read Article
Times Interest Earned – Formula, Advantages, Limitations
Times interest earned (TIE) is a metric that helps to measure a company’s ability to meet the interest payments on its debt. To calculate… Read Article
How is DSCR Calculated?
Understanding DSCRDebt Service Coverage Ratio or DSCR indicates the ability of the company to service its debt obligations from earnings generated from its operations.… Read Article
Cash Flow Coverage Ratio
What is a Cash Flow Coverage Ratio?The cash flow coverage ratio is the ratio of operating cash flow to its debt. It is a coverage… Read Article
How to Analyze (Interpret) and Improve Debt Service Coverage Ratio (DSCR)?
The debt service coverage ratio (DSCR) is a very important ratio used extensively by lenders to check if the borrower company has sufficient cash… Read Article
How to Calculate Debt from Balance Sheet?
Before we explain how to calculate total debt from the balance sheet, it would be necessary to understand the various definitions of debt patiently.… Read Article
Fixed Charge Coverage Ratio
The fixed charge coverage ratio is the most meaningful ratio out of all the coverage ratios from a general point of view. It is… Read Article