Good week friends, on the subject (DCR (DSCR, I would love to sharpen the NOI (annual) divided into Debt Coverage ...
Great week friends,
On the subject (DCR (DSCR, I would be happy to sharpen
The NOI (annual) is divided by Debt Coverage (also annual?) - and this is actually the ratio?
Does this mean different treatment?
More important things to know about this?
I do not understand the matter until the end,
Thank you
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To calculate the ratio, divide the following:
We
Of course, these costs should be in annual terms, as well as all the costs associated with the debt
We
Should be.
The ratio belongs to the family of financial ratios that examine the ability of the cash flow / periodic profit to deal with interest refunds and / or periodic fund repayments such as interest coverage ratio and debt coverage ratio.
Regarding the ratio you asked about, you would want the ratio to be greater than 1 so you do not have to bring money from home to serve the debt you took to finance an investment.
Hope I poured some light 🙂
Thanks Ilan Gilad for the question. Fun you share on the forum.