Debt-Service Coverage Ratio: A Useful Financial Measurement for Assessing Future Debt Recovery
Debt RR
OCTOBER 13, 2019
This includes lease payments, sinking-funds, and any other loans, both principal and interest, along with operating expenses. However, it may be too rigid to use net DSCR alone when examining an entity’s creditworthiness. Suppose a real estate developer needs a $500,000 loan for a property, and the down payment is 20%, or $100,000.
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