Why is the DSCR "on profit before tax"?

Because Margin's books have no income tax line. So Margin works the DSCR (debt service coverage ratio) out on profit before tax, and says so wherever it shows one: DSCR (on profit before tax) on the screen, on the certificate and in its Excel file, which adds that a lender who takes tax off first will work out a lower figure. Keep that in mind when you read its headroom.

Over the month or quarter tested:

• EBITDA is the net profit, with interest expense (5320) and depreciation added back. Bank charges and fees such as processing or foreclosure fees aren't added back.
• Debt service is that interest, plus the principal of the EMIs due in the period, from each term loan's schedule in Books → Loans.
• The DSCR is EBITDA divided by debt service.

A cash credit or overdraft has no EMIs, so none of its balance is debt service. If no interest or EMIs fell due in the period, such as before a term loan's first EMI, there's nothing to cover: the DSCR shows Not tested: nothing fell due, and the certificate can still be approved. A quarterly one needs each month of the quarter locked.