How can share repurchase programs affect a company's leverage and its debt coverage ratio?

A ratio of around 1 is considered less healthy. It's simple, according to Sood: “If you're at 1, all of the EBITDA you earn is going straight to debt,. Cash Current Debt Coverage Ratio · Ratio > 1: This means the company earned enough cash from its primary operations to pay its current liabilities. · Higher ... A good rule of thumb requires an agency to have three months of cash ... The debt coverage ratio (sometimes referred to as the “debt service coverage ratio”) is ... Apr 2, 2024 ... The debt-service coverage ratio formula divides the company's annual net operating income (NOI) by its total annual debt service. Apr 13, 2022 ... with good degree of ... For project-financed issuers, this factor comprises three sub-factors: Minimum Debt Service Coverage Ratio (DSCR), Average ... Whatever industry you're in, banks and lenders will look at your DSCR to determine whether you can pay back a loan. They usually want this ratio to be more than ... Jun 28, 2022 ... What is a good debt-service coverage ratio? Most SBA lenders will want a debt-service coverage ratio (DSCR) above at least 1.25. This means ... The debt service coverage ratio (DSCR), also known as the debt coverage ratio (DCR), is a financial ratio that measures an entity's ability to generate ... Feb 26, 2025 ... Debt Service Coverage Ratio (DSCR) Meaning; What is a Good Debt Service Coverage Ratio? How to Calculate DSCR for Real Estate; Adjustments to ... A DSCR above 1 is better than a ratio at or below 1 because it indicates a stronger position and ability to repay debts.