Debt-Service Coverage Ratio (DSCR): How To Use and Calculate It
Understanding Debt-Service Coverage Ratio (DSCR)Debt-service coverage ratio is a widely used indicator of a company's financial health, especially those who are highly levered and carrying a lot of debt. The ratio compares a company's total debt obligations (including principal repayments and some capital lease agreements) to its operating income. Different lenders, stakeholders, and partners will target different DSCR metrics. In addition, a company's history, industry, produc...
Debt-Service Coverage Ratio (DSCR): How To Use and Calculate It
Understanding Debt-Service Coverage Ratio (DSCR)Debt-service coverage ratio is a widely used indicator of a company's financial health, especially those who are highly levered and carrying a lot of debt. The ratio compares a company's total debt obligations (including principal repayments and some capital lease agreements) to its operating income. Different lenders, stakeholders, and partners will target different DSCR metrics. In addition, a company's history, industry, produc...
