Debt Service Coverage Ratio Excel Template

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Suppose that company A is selling TVs and they have 2 stores as of now.
They want to expand and want to open a new store but they do not have
much cash in hand to invest now. So they want to explore the debt option
and want to take a loan for that. The company already have a loan in their
books so they are worried that they might not be able to get another loan.
Following is the details of their financials:

Net Operating Income $100,000

Interest Expeses $30,000
Principal Payments $25,000
Lease Payments $15,000
Other Debt Obligations $15,000

Total Debt Payments $85,000

Debt Service Coverage Ratio is calculated using the formula given below
Debt Service Coverage Ratio (DSCR) = Annual Net Operating Income / Total Debt Service

Debt Service Coverage Ratio 1.176

Income statement All numbers in thousands
Revenue 9/30/2018 9/30/2017
Total Revenue 34,499.50 24,764.61
Cost of Revenue 27,931.43 20,572.97
Gross Profit 6,568.08 4,191.64
Operating Expenses
Research Development - -
Selling General and Administrative 6,011.42 3,593.17
Non-recurring - -
Others - -
Total Operating Expenses 33,942.85 24,166.14
Operating Income or Loss 556.652 598.47
Income from continuing operations
Total Other Income/Expenses Net 75.668 -19.124
Earnings before interest and taxes 556.652 598.47
Interest Expense 115.447 115.447
Income Before Tax 632.32 579.346
Income Tax Expense -747 -

Net Operating Income for 2018 556.652

Debt Payment 115.447

Debt Service Coverage Ratio is calculated using the formula given below
Debt Service Coverage Ratio (DSCR) = Annual Net Operating Income / Total Debt Service

Debt Service Coverage Ratio 4.82