I generally want to see the Net Interest / EBITA % lower than a 12.5 - 15.0 % maximum, and I may adjust my Price / Sales valuations up / down based on this ratio to reflect
available Debt capacity or constraints.
With zero interest expense, one might also expect a debt adjustment — unfortunately, INM still has an $ 86 million pension deficit on the balance sheet, and if we consider it a debt - proxy, it effectively absorbs what would otherwise be
available debt capacity:
Not exact matches
Essentially what that means is we've got somewhere between $ 1.5 billion and $ 2 billion of
debt capacity available to us.
Online support is also
available via its
Debt Remedy tool and vulnerable people (due to age, mental health or
capacity) are able to get extra help support via the free advocacy service.
And you've got years of guaranteed (low yield)
debt refinancing
capacity available anyway!
A FICO score is based on various factors including: punctuality of payment in the past,
capacity used (ratio of current revolving
debt to total
available revolving credit), length of credit history, types of credits used and recent credits obtained.
The presence of massive
debt retarding the ability of law graduates to pursue such
available opportunities in the «hinterlands» of Canada because their
debt outstrips their
capacity to repay when earning lower salaries (even with lower costs of living) is a tragedy.