Board of Visitors minutes April 7, 2006 | ||
Debt Service Coverage Ratio
This ratio measures the University’s ability to cover debt service requirements with revenues available for operations. The target established is intended to ensure that operating revenues are sufficient to meet debt service requirements and that debt service does not consume too large a portion of income.
OPERATING GAIN/(LOSS)
+ NON-OPERATING
REVENUE
+ DEPRECIATION >3x
ANNUAL DEBT
SERVICE
This ratio is adjusted to reflect any non-amortizing or
5
Board of Visitors minutes April 7, 2006 | ||