No |
INDICATOR |
DEFINITION |
UNIT |
24.1 |
Operating Cost Coverage |
Total annual operational revenues/Total annual operating costs |
ratio |
25.1 |
Debt Service Ratio |
Cash income / Debt service * 100 |
% |
Notes
These two indicators have been selected from a much larger range of financial indicators (which include leverage, liquidity, profitability and efficiency ratios). They help answer two important questions: (i) Do revenues exceed operating costs? and (ii) Does the utility’s income enable it to service its debts?