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. DSCR is just one of many metrics lenders use to determine an organization’s ability to pay, however, it’s the most important. Debt-service coverage ratio (DSCR) is a vital corporate finance tool.
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