Search results
Results From The WOW.Com Content Network
Related ratios are: Project Life Coverage Ratio (PLCR) and Reserve Life Coverage Ratio (RLCR). The ratio usually is in a range from 1.25 for highly geared infrastructure investment to 2.5 or higher in an investments with more insecure income, such as oil and gas transactions.
The debt service coverage ratio (DSCR), also known as "debt coverage ratio" (DCR), is a financial metric used to assess an entity's ability to generate enough cash to cover its debt service obligations, such as interest, principal, and lease payments. The DSCR is calculated by dividing the operating income by the total amount of debt service due.
Financial analysts use financial ratios to compare the strengths and weaknesses in various companies. [1] If shares in a company are publicly listed, the market price of the shares is used in certain financial ratios. Ratios can be expressed as a decimal value, such as 0.10, or given as an equivalent percentage value, such as 10%.
The term Advanced IRB or A-IRB is an abbreviation of advanced internal ratings-based approach, and it refers to a set of credit risk measurement techniques proposed under Basel II capital adequacy rules for banking institutions.
A declining ratio may indicate that the business is over-invested in plant, equipment, or other fixed assets. In A.A.T. assessments this financial measure is calculated in two different ways. 1. Total Asset Turnover Ratio = Revenue / Total Assets 2. Net Asset Turnover Ratio = Revenue / (Total Assets - Current Liabilities)
The two main kinds of DTI are expressed as a pair using the notation / (for example, 28/36).. The first DTI, known as the front-end ratio, indicates the percentage of income that goes toward housing costs, which for renters is the rent amount and for homeowners is PITI (mortgage principal and interest, mortgage insurance premium [when applicable], hazard insurance premium, property taxes, and ...
For example, the ratio 4:5 can be written as 1:1.25 (dividing both sides by 4) Alternatively, it can be written as 0.8:1 (dividing both sides by 5). Where the context makes the meaning clear, a ratio in this form is sometimes written without the 1 and the ratio symbol (:), though, mathematically, this makes it a factor or multiplier.
Exposure at default or (EAD) is a parameter used in the calculation of economic capital or regulatory capital under Basel II for a banking institution. It can be defined as the gross exposure under a facility upon default of an obligor.