How does a low debt coverage ratio reflect on a company's financial health?

The standard minimum for agriculture is 1.25:1, which means that for every dollar of debt, the farm is generating $1.25 to cover its financial obligations, she ... The Debt Service Coverage Ratio (sometimes called DSC or DSCR) is a credit metric used to understand how easily a company's operating cash flow can cover its ... Nov 3, 2021 ... ... great experience and to help our website run effectively. Copyright © 2023 Trivericon Inc./Financial Intelligence/Multifamily Refinance. All ... Cash Current Debt Coverage Ratio · Ratio > 1: This means the company earned enough cash from its primary operations to pay its current liabilities. · Higher ... Jan 18, 2017 ... While 1.15 and 1.20 is considered adequate, a Coverage Ratio of 1.50 or higher is considered good. fdd180117_tab3.jpg. In today's agricultural ... Sep 6, 2024 ... Starting with the 2024:Q2 Debt Service Ratio (DSR) publication, the Board will transition to a new, credit bureau data-based methodology for ... Jun 23, 2015 ... Debt service coverage ratio, as the name suggests, measures the system's ability to pay its long-term debts. 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 ... 1.20x – 1.50x: Lenders might accept these ratios for a simple asset with mostly “locked in” revenue, such as a small solar plant with rates and production ... 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 ...