Debt-Service Coverage Ratio: A Useful Financial Measurement for Assessing Future Debt Recovery
Debt RR
OCTOBER 13, 2019
It’s the ratio of net operating income as a multiple of debt obligations due within one year. This includes lease payments, sinking-funds, and any other loans, both principal and interest, along with operating expenses. The higher the DSCR from a borrower, the better for the business collecting the debt. DSCR for B2C.
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