What credit measures do banks often look at? / What typical credit analysis ratios are there?

The most popular credit indicators are – For long term debt: Leverage ratios: Debt / Equity, Debt / Total Capital, Debt / EBITDA, Coverage ratios: Interest Coverage (very important), fixed charge coverage, Debt Service Coverage Ratio (also called DSCR – very important) Others: Loan to Value Ratio Debt to equity, Debt to Total Assets, Debt...

This content is for Technical Q&A, Comprehensive Q&A, Comprehensive Q&A plus 1-to-1, and Credit Analyst members only.
Login Join Now