In the case of property investments that are partially financed with borrowed funds, BETCF refers to the equity cash flow, that is, the income the investor receives
net of debt service (loan or mortgage payments).
Not exact matches
The Postal
Service reported a
net loss
of $ 2.1 billion in the third quarter
of 2017, and has $ 15 billion in outstanding
debt.
«In each
of the years between 2027 and 2033, PWBM projects that the bill will continue to reduce revenues
net of outlays, not including the additional costs
of debt service,» the Penn report said.
Some
of the proceeds
of the IPO will go to repay outstanding
debt Zipcar owes to financial instutitutions, and «approximately $ 5.0 million to repay amounts owing to certain former shareholders
of Streetcar» as well as a portion
of the
net proceeds to invest in «companies, technologies,
services or assets that complement our business.»
In that case any credit - fueled increase in investment would likely have resulted in a
net improvement in China's
debt servicing capacity, in which case, with government
debt at well below 25 %
of GDP, rising
debt would not be a concern.
As the gap widens, it creates rising uncertainty about how excess
debt servicing costs will ultimately be allocated, and at the point at which this uncertainty is high enough to alter materially the behavior
of economic agents, and so lower the
net asset value
of the economic entity, the borrowing country has «excessive»
debt.
There are many other ways
of allocating a significant portion
of the
debt -
servicing cost to unwilling agents in the economic equivalent
of debt forgiveness: to creditors when
debt is repudiated, to workers when wages are suppressed in order to increase
net revenues for
debt servicing, to small business owners when assets are expropriated to pay down
debt, and so on.
Assuming that the total amount
of bad
debt in the banking system exceeds total bank capital — something which is almost certainly true — the conversion
of debt which can not be
serviced into an equity position that is unlikely to generate much more (and in an economic downturn, which is when we are most concerned about the
debt burden, we can assume that the decline in value
of these equity positions will be highly correlated) leaves the
net indebtedness
of the banking system unchanged, and so the contingent liabilities
of the government are unchanged even as reported
debt in the system declines.
While this reduces the reported amount
of outstanding
debt, if the concern is the ability
of borrowers to generate the returns needed to
service the
debt that funded these projects, converting them into equity does not reduce the riskiness
of the banking system, nor does it reduce
net indebtedness for the country overall.
At the time the US was a
net creditor worldwide, so this move simultaneously saved the US Dollar, and upped the rate
of US Dollars that other nations had to acquire to
service their US Dollar denominated
debt.
Debt Service Coverage Ratio =
Net Profit plus Depreciation plus Amortization plus Interest Expense divided by Current Portion
of Existing plus Proposed
Debt.
Divide the business
net operating income for a year by the amount
of the total
debt to be paid off (
serviced) during that year.
Measures
of financial stability include the ability to sustain current dividend payments from earned
net income, adequacy
of working capital, ability to
service debt from earned cash flows, stability
of profit margins, analysis
of price behavior, and other factors.
Finally the impact
of the new
net spending, fresh overheads, administrative overreach, additional costs
of controls, leakages, and the second - order effects
of these parameters was assessed on key macroeconomic variables such as inflation, GDP - per - capita growth,
debt service - to - revenue ratio, exchange rate, import cover, interest rates and credit dynamics.
The statute will limit new
debt to 4 percent
of net personal income in the state, and it will also limit
debt -
service costs, he said.
The law allows districts to deduct existing
debt -
service payments from the funds they must share, but many Florida districts
net millions
of dollars in annual capital revenue even after making
debt payments — money they will now have to distribute proportionally based on enrollments.
- NCE (
net current expenditure): Total district expenditures, including teacher salaries, minus the cost
of capital outlay,
debt service and transportation.
This divides the
net operating income — all revenue minus all reasonably necessary operating expenses — by annual
debt service — i.e., payments
of principal and interest for the year.
At the next application cycle, the applicant's total gross salary may not exceed $ 66,000; however if the attorney's annual
net debt service is greater than or equal to 10 %
of the attorney's current annual gross salary he / she may apply regardless
of the annual gross salary cap.
Measures
of financial stability include the ability to sustain current dividend payments from earned
net income, adequacy
of working capital, ability to
service debt from earned cash flows, stability
of profit margins, analysis
of price behavior, and other factors.
The second major protective factor is the company's fortress - like balance, specifically one marked by an enormous
net cash position (enough to fund the dividend for 18 years), and one
of the highest current ratios (short - term assets / short - term liabilities) in the industry, indicating the company has no problems
servicing its
debt or liabilities.
A
Debt Service Coverage Ratio of 1.00 is considered «break even» as the Net Operating Income is just enough to cover the debt serv
Debt Service Coverage Ratio of 1.00 is considered «break even» as the Net Operating Income is just enough to cover the debt s
Service Coverage Ratio
of 1.00 is considered «break even» as the
Net Operating Income is just enough to cover the
debt serv
debt serviceservice.
This is calculated by dividing the
Net Operating Income (all rental income minus all reasonable operating expenses) by the
Debt Service (cash required during a specified time period to cover the payment of interest and principal on a de
Debt Service (cash required during a specified time period to cover the payment
of interest and principal on a
debtdebt).
Mounting private
debt claims a portion
of nominal economic growth for
debt service and therefore increased emissions that contributes only to the welfare
of the credit issuers, mostly large financial institutions or speculative traders and not to overall social welfare or, on average,
net incomes
of the borrowers.
Negative
debt service results when
net operating income falls short
of covering monthly mortgage payments.
«A key cause
of default is when
net operating income falls below the
debt service.
Debt Coverage Ratio (DCR) An indicator
of the mortgage payment required to
service the loan on income - producing property relative the
net operating income generated by the property.
The
debt service coverage ratio (DSCR) is the relationship
of a property's annual
net operating income (NOI) to its annual mortgage
debt service (principal and interest payments).
Debt Service Coverage (DSC)-- This frequently used term refers to the ratio between the monthly
net income
of an income - producing property and the required monthly loan payment; it is often abbreviated as DSC.
DCR is a ratio that expresses the number
of times annual
net operating income exceeds
debt service (i.e., total loan payment, including both principal and interest).
After the first property is free and clear, the positive cashflow from that property is no longer $ 9200 but rather the entire
Net Operating Income
of $ 32.6 k since there no more
debt to
service.
Although you can not personally guarantee the loan an analysis
of personal
debt service,
net worth, and credit is required.
Although the subject properties have experienced improved
net operating income, MEDCO is concerned about their
debt -
service coverage performance and engaged Scion to apply lessons learned from operational reviews at dozens
of campuses, normative data from the Institute
of Real Estate Management and its own experience in operating student housing facilities.
The Loan Amount is a function
of LTV and a minimum
Debt Service Coverage Ratio (DSCR)
of 1.2 x. DSCR is calculated by taking portfolio
net income (not including interest expense) and dividing by your loan's interest expense.
It's the same reason some flippers (no names mentioned) like to present the «cash flow» as the
net of the rent - assumed
debt service.
Lenders often look for a
net worth equal to the loan amount and cash reserves at either some number
of month's
of debt service or some percentage
of the loan amount.