Q&ACategory: Dividend StocksDebt Service Ratio for SIA 31 Mar 2023
Chin Sien Liew asked 11 months ago
Hi Fifth Person team, The debt service ratio for SIA as of March 31, 2023, was 0.14%, calculated as (finance charges of $419.90 - interest income of $412.60) divided by $5,099 (operating cash flow before working capital changes). Am I correct? Thanks Best regards Liew Chin Sien
1 Answers
Rusmin Ang Staff answered 11 months ago
Hi Chin,   Almost correct, except the answer is a negative figure. That means that they are actually earning net interest income.
Chin Sien Liew replied 11 months ago

Hi Rusmin, noted. Thanks!

Sean Lam replied 4 months ago

Hi Rusmin, why is this considered a net interest income? Isn’t the finance charge greater than the interest income? So this will still be an interest expense?

Rusmin Ang Staff replied 4 months ago

Will follow up the discussion with you below:

https://dividendmachines.com/question/sia-debt-service-ratio/