How do we calculate DSCR if PAT is loss ?
And also what is the formula for Days of rec formula. I have a rec(i.e. Sundry Debtors) of Rs 2137246694 and sale for the year of Rs.8763033905. So what will be my Days of receivable ?
Suggestions and comments awaited. Thanks.
you can use operating profits before deducting the interest cost to calculate DSCR.
and i think ur days of recovery are 89 days.
lets wait for some other suggestions
I also think that we can use operating profit before interest,depreciation and other non cash items but after tax should be taken
If ratio is less than one then it indicates the long term solvancy problem
Agreeing with Ashish Gupta
Assuming that given sale is on credit and average debtors are 2137246694
2137246694 X 365 / 8763033905 = 89 days
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