Debt to Asset Ratio. Calculation: (Total Liabilities, excluding pension liabilities) ÷ (Total Assets, excluding pension assets) Data Source: Annual Fiscal Audit Report Exceeds Standard The school has met standard for 3 consecutive years, including the most recently completed school year, OR the school operates debt-free. Approaches Standard The school’s Debt to Asset Ratio is between 0.9. and 1.0 Does Not Meet Standard The school’s Debt to Asset Ratio is greater than 1.0
Debt to Asset Ratio. Permit the Debt to Asset Ratio to be greater than 3.00:1.003.50:1.00 at any time. As used herein, “Debt to Asset Ratio” means the result of (a) all Debt of the Borrowers and each of their respective Subsidiaries (including, without limitation, any Subsidiary Financing) to (b) the Net Asset Value.
Debt to Asset Ratio. Purpose ‐ The Debt to Asset Ratio measures the amount of debt a school owes compared to the assets they own; it measures the extent to which the school relies on borrowed funds to finance operations. A Debt to Asset Ratio greater than 1.0 indicates a school has more debt than it has assets to pay off said debt. It is a generally accepted indicator of potential long‐term financial issues, as the organization owes more than it owns, reflecting a risky financial position. A ratio less than 0.9 indicates a financially healthy balance sheet, both in the assets and liabilities, and with the balance in the Net Position, or equity, account. What is the formula? (𝑻𝒐𝒕𝒂𝒍 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔 — 𝑵𝒆𝒕 𝑷𝒆𝒏𝒔𝒊𝒐𝒏 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔) = 𝑫𝒆𝒃𝒕 𝒕𝒐 𝑨𝒔𝒔𝒆𝒕 𝑹𝒂𝒕𝒊𝒐 𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕𝒔 Data source(s): • Statement of Net Position • Net Pension Liability balance information • Confirmation that employer contribution expenses are not backed out from Statement of Activities Total Liabilites = $12,000 = 𝟎. 𝟔𝟎 𝐃𝐞𝐛𝐭 𝐭𝐨 𝐀𝐬𝐬𝐞𝐭 𝐑𝐚𝐭��𝐨 Total Assets $20,000 Debt to Asset Ratio is less than (<) 0.90 ☒ Meets Standard What is the metric used to determine school status?
Debt to Asset Ratio. Total borrowings divided by total assets, all determined in accordance with GAAP as derived from the latest audited financial statements of the Borrower. Before finalizing the Ratio, the total assets shall be adjusted by substituting the net book value of the investment in real estate determined in accordance with GAAP with the aggregate appraised value of all the real estate owned by the Borrower. For the avoidance of doubt, total borrowings exclude on the date of calculation any unused or undrawn portion of any credit facilities.
Debt to Asset Ratio. Debt to Asset Ratio shall not be greater than 60% (measured annually as of the end of Borrower's fiscal year and calculated based Borrower's financial statements delivered 90 days after fiscal year end). Capitalized terms used, but not defined, in this Rider have the respective meanings set forth in annex A hereto. All determinations of Borrower's compliance with the foregoing covenants will be made exclusively by reference to Xxxxxxxx's financial statements delivered pursuant hereto. BY SIGNING XXXXX, Xxxxxxxx accepts and agrees to the terms and covenants contained in this Financial Information and Covenants Rider. /s/ Xxxxxxx X. Xxxx Signature Xxxxxxx X. Xxxx, Chief Financial Officer [Sign Originals Only] ANNEX A As used in this Rider, the following terms have the following meanings:
Debt to Asset Ratio. 1. Aggregate Outstanding Amount of the Notes
2. Amount of dollars and Eligible Investments held in the Accounts
3. Fair value of other Collateral:
3.1. Most recent value per two most recent financial statements
3.2. New Participations acquired during period (at par of funded Covered Distribution Interest)
3.3. Other subsequent period adjustment (if any)
4. Beginning Debt to Asset Ratio 5. Asset Coverage Event?
Debt to Asset Ratio. Debt-to-asset ratio" means the total outstanding liabilities of an applicant divided by the total outstanding assets of the applicant expressed as a percentage.
