Debt-Service Coverage Ratio: A Useful Financial Measurement for Assessing Future Debt Recovery
Debt RR
OCTOBER 13, 2019
It’s how lenders measure an organization’s available cash flow to pay off debt obligations, essentially a credit score for a business. This matters because creditors use this information to determine whether to do business with the U.S. Like personal credit scores, DSCR ratios are calculated differently by different creditors.
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