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. How they earn their operating income to cover the debt will differ too. DSCR for B2C. DSCR for B2B.
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