We compute 'economic' debt service cover ratios or DSCR, including all cash at bank (including any debt service reserve account). This ensures consistent computations across firms and a DSCR that genuinely represents the hard default point (DSCR=1).
Debt service cover ratios are computed as:
where,
-
is cash from operations -
is cash from investment activities -
is cash from investments (e.g. funds kept in escrow for bond-funded projects) -
is cash at bank -
is cash from equity and debt drawdowns