Repayment Capacity

A measurement of the ability of a borrower to repay non-current liabilities which are interest bearing or have a due date or both. Principal payments on non-current liabilities (long term debt) must come from net income (with depreciation and other non-cash expenses added back) after owner withdrawals, and Social Security taxes. See also borrowing capacity (II-7; III-1-2, 4, 15-20)

Authorization Path: 2.2.5.2.43.1