Certain Ratios Clause Samples

The 'Certain Ratios' clause establishes specific financial ratios that a party, typically a borrower, must maintain throughout the term of an agreement. These ratios might include measures such as debt-to-equity, interest coverage, or current ratio, and are usually calculated based on the party's financial statements at regular intervals. By requiring adherence to these ratios, the clause helps ensure the ongoing financial health and stability of the party, thereby protecting the interests of the other party—often a lender—by providing early warning of potential financial distress.
Certain Ratios. (a) The Borrower shall not permit the Loan Coverage Ratio to be, as of the last day of each fiscal year of the Borrower, less than 1.20:1.00. (b) The Borrower shall not permit the Consolidated EBITDA to Consolidated Interest Charge Ratio to be less than 2.00:1.00, as of the last day of each fiscal quarter of the Borrower. (c) The Borrower shall not permit the Consolidated Leverage Ratio to be more than 3.00:1.00, as of the last day of each second and last fiscal quarter of the Borrower commencing with the fiscal quarter of the Borrower ending on November 30, 2017. (d) The Borrower shall not permit the Consolidated Current Ratio to be less than 1.1:1.00, as of the last day of each second and last fiscal quarter of the Borrower commencing with the fiscal quarter of the Borrower ending on November 30, 2017. (e) The Borrower shall not permit the Consolidated Solvency Ratio to be less than 20%, as of the last day of any fiscal year of the Borrower. (f) The Borrower shall not permit the Reference Debt Service Coverage Ratio to be less than 1.50:1.00, as of the day immediately preceding any Interest Payment Date. (g) The Borrower shall not permit the Consolidated Total Net Indebtedness as of the last day of the fiscal quarter of the Borrower ending on August 31, 2017 to be greater than the Consolidated Total Net Indebtedness as of the last day of the fiscal quarter of the Borrower ending on May 31, 2017.
View SourceView Similar (3)
Certain Ratios. (a) The Borrower shall not permit the Consolidated EBITDA to Consolidated Interest Expense Ratio to be less than 3.5:1.00 at any time. (b) The Borrower shall not permit the Consolidated Leverage Ratio to be more than (i) 4.5:1.00 at any time during the period commencing on the Closing Date and ending on March 31, 2016; (ii) 3.5:1.00 at any time during the period commencing on April 1, 2016 and ending on December 31, 2017; and (iii) 2.5:1.00 at any time thereafter. (c) The Borrower shall not permit the Debt Service Coverage Ratio to be less than 1.5:1.00 as of the last day of any fiscal quarter of the Borrower falling on or after the first anniversary of the Closing Date.
View Source
Certain Ratios. (a) The Company will not at any time permit the ratio of (1) Consolidated Cash Flow to (2) Consolidated Fixed Charges, to be less than 2.00 to 1.0, determined as of the end of each fiscal quarter for the immediately preceding four fiscal quarters (ending on the date of calculation) treating such period of four fiscal quarters as a single accounting period. (b) The Company will not at any time permit the ratio of (1) Consolidated Funded Debt to (2) Consolidated Cash Flow to exceed (A) 4.00 to 1.00 for the period from the Closing to and including July 31, 1999, (B) 3.50 to 1.00 for the period from August 1, 1999 to and including January 31, 2000 and (C) 3.00 to 1.00 at all times thereafter, in each case determined as of the end of each fiscal quarter for the immediately preceding four fiscal quarters (ending on the date of calculation) treating such period of four fiscal quarters as a single accounting period. (c) The Company will not, at any time, permit Priority Debt to exceed an amount equal to 10% (or, at all times from and after the Release Date, 15%) of Consolidated Net Worth.
View Source
Certain Ratios. The Company will not at any time permit the ratio of Consolidated EBIT for the immediately preceding four fiscal quarter period to Consolidated Interest Expense for the immediately preceding four fiscal quarter period to be less than: DURING THE PERIOD: RATIO Effective Date through 1.20 to 1.00 September 30, 1999 October 1, 1999 through 1.50 to 1.00 December 31, 1999 January 1, 2000 through 2.00 to 1.00 March 31, 2000 April 1, 2000 and 2.50 to 1.00" thereafter
View Source
Certain Ratios. (a) The Company will at all times maintain the ratio of Consolidated Indebtedness to Consolidated Total Capitalization at not more than 0.40 to 1.00. For purposes of determining compliance with this Section 5.7(a), the term "Consolidated Indebtedness" shall not include Indebtedness of M-I Drilling under the M-I Drilling Facility or other Indebtedness of M-I Drilling incurred within the limitations of Section 5.9(a)(5)
View Source
Certain Ratios. 2.1. Section 6.1(a) of the Guaranty is hereby deleted in its entirety and replace with the following Section 6.1(a): (a) At each Quarterly Measurement Date from and after March 31, 2003, the Fixed Charge Coverage Ratio will not be less than the ratio set forth below opposite such Quarterly Measurement Date (or any Quarterly Measurement Date which falls during the period set forth below): January 1, 2003 through December 31, 2003 1.6:1 January 1, 2004 through December 31, 2004 1.65:1 January 1, 2005 and thereafter 1.7:1 2.2. Section 6.2 of the Guaranty is hereby deleted in its entirety and replaced with the following Section 6.2:
View Source
Certain Ratios. (a) Capital Expenditures (i) UHC will not, and will not permit any of its Subsidiaries to, make or commit to make any expenditure for fixed or capital assets (including, without limitation, expenditures for maintenance and repairs which should be capitalized in accordance with generally accepted accounting principles and including Capitalized Lease Obligations (collectively, "Capital Expenditures"), except that UHC and its Subsidiaries may make Capital Expenditures so long as the aggregate amount thereof does not exceed during any fiscal year, the amount set forth below opposite such date: Fiscal Year Ended Amount ----------------- ------ December 31, 2000 $25,000,000 December 31, 2001 5,500,000 December 31, 2002 and thereafter 4,500,000
View Source
Certain Ratios 
View SourceView Similar (2)

Related to Certain Ratios

  • Leverage Ratios Notwithstanding anything to the contrary contained herein, for purposes of calculating any leverage ratio herein in connection with the incurrence of any Indebtedness, (a) there shall be no netting of the cash proceeds proposed to be received in connection with the incurrence of such Indebtedness and (b) to the extent the Indebtedness to be incurred is revolving Indebtedness, such incurred revolving Indebtedness (or if applicable, the portion (and only such portion) of the increased commitments thereunder) shall be treated as fully drawn.

  • Financial Ratios Any financial ratios required to be maintained by any Loan Party pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

  • Debt to Capitalization Ratio As of the last day of each fiscal quarter of the Borrower, the Debt to Capitalization Ratio shall be less than or equal to 0.70 to 1.0.

  • Certain Financial Covenants In addition to the covenants described in Section 5.1 and Section 5.2, so long as any Commitment remains in effect, any Advance is outstanding or any amount is owing to any Lender hereunder or under any other Loan Document, the Borrower will perform and comply with each of the covenants set forth on Schedule VI.

  • Capitalization Ratio Permit the ratio of Consolidated Debt of the Borrower to Consolidated Capital of the Borrower to exceed .58 to 1.00.