Q&ACategory: Dividend StocksDebt Servicing Ratio
DANIEL ONG asked 1 month ago
Hi Rusmin, Victor, I'm looking at CKI AR and found that it has the following interest income from:
  1. Interest income from loans granted to associates
  2. Interest income from banks
  3. Interest income from investment in securities
  4. Interest received from associates
Q1: When calculating its debt servicing ratio, should I add all the interest incomes (item 1 to 4) or just take item 2 (Interest income from bank)?
1 Answers
Victor Chng Staff answered 4 weeks ago
Hi Daniel,

You can take items 2 & 3. If you want to be conservative then take item 2 only.