CREDIT DESK
Professional credit analysis calculators
Debt-Equity & Leverage Analysis
Year-wise leverage ratios — DER, TOL/TNW, Interest Coverage, and Net Debt/EBITDA
Balance Sheet
₹ Crore| Item | Yr 1 | Yr 2 | Yr 3 |
|---|---|---|---|
| Paid-up Share Capital | |||
| Reserves & Surplus | |||
| Less: Intangibles / Misc. Exp.goodwill, preliminary expenses | |||
| = Tangible Net Worth (TNW) | 0.00 | 0.00 | 0.00 |
| Term Loans / Long-term Debt | |||
| Working Capital Borrowings (CC / OD) | |||
| = Total Debt (TL + WC) | 0.00 | 0.00 | 0.00 |
| Less: Cash & Bank Balances | |||
| = Net Debt | 0.00 | 0.00 | 0.00 |
| Trade Creditors / Sundry Creditors | |||
| Other Current Liabilities & Provisions | |||
| = Total Outside Liabilities (TOL)Total Debt + Trade Creditors + OCL | 0.00 | 0.00 | 0.00 |
Profit & Loss
₹ Crore| Item | Yr 1 | Yr 2 | Yr 3 |
|---|---|---|---|
| EBITOperating profit before interest & tax | |||
| Finance Charges (Interest) | |||
| Depreciation & Amortization | |||
| = EBITDAEBIT + Depreciation | 0.00 | 0.00 | 0.00 |
Leverage Ratios
| Ratio | Yr 1 | Yr 2 | Yr 3 | Benchmark |
|---|---|---|---|---|
Debt-Equity Ratio (DER) Total Debt ÷ Tangible Net Worth | — | — | — | ≤ 3:1 (ideal ≤ 2:1) |
TOL / Tangible Net Worth Total Outside Liabilities ÷ TNW | — | — | — | ≤ 4:1 (ideal ≤ 3:1) |
Interest Coverage (ICR) EBIT ÷ Finance Charges | — | — | — | ≥ 2.0x (min ≥ 1.5x) |
Net Debt / EBITDA (Total Debt − Cash) ÷ EBITDA | — | — | — | ≤ 3.0x (ideal ≤ 2.0x) |
Benchmark Reference
Debt-Equity Ratio (DER)
Good: ≤ 2:1
Adequate: ≤ 3:1
Marginal: ≤ 4:1
Weak: > 4:1
TOL / Tangible Net Worth
Good: ≤ 3:1
Adequate: ≤ 4:1
Marginal: ≤ 5:1
Weak: > 5:1
Interest Coverage (ICR)
Good: ≥ 3.0x
Adequate: ≥ 2.0x
Marginal: ≥ 1.5x
Weak: < 1.5x
Net Debt / EBITDA
Good: ≤ 2.0x
Adequate: ≤ 3.0x
Marginal: ≤ 5.0x
Weak: > 5.0x