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The debt service coverage ratio (DSCR), also known as "debt coverage ratio" (DCR), is a financial metric used to assess an entity's ability to generate enough cash to cover its debt service obligations, such as interest, principal, and lease payments. The DSCR is calculated by dividing the operating income by the total amount of debt service due.
A higher DSCR indicates that an entity has a greater ability to service its debts. Banks and lenders often use a minimum DSCR ratio as a condition in covenants, and a breach can sometimes be considered an act of default.
and 26 Related for: Debt service coverage ratio information
healthier when this ratio is low. For most countries the ratio is between 0 and 20%. In contrast to the debtservicecoverageratio, which is calculated...
other credits or grants. The debtservicecoverageratio is the ratio of income available to the amount of debtservice due (including both interest and...
Times interest earned (TIE) or interest coverageratio is a measure of a company's ability to honor its debt payments. It may be calculated as either EBIT...
corresponding debt repayment profile; there are several related metrics here, the most important of which is arguably the DebtServiceCoverageRatio (DSCR)...
Life CoverageRatio LLCR is a ratio commonly used in project finance. The ratio is defined as: Net Present Value of Cashflow Available for DebtService ("CFADS")...
including debtservicecoverageratio, loan-to-value ratio, and debt yield ratio to assess out whether the property is capable of making debtservice payments...
minimum debtservicecoverageratio which typically ranges from 1.1 to 1.4; the ratio is net cash flow (the income the property produces) over the debt service...
words, the debtservicecoverageratio should be 1.2 or higher to show that an extra cushion exists and that the business can afford its debt requirements...
related loans are the Loan to Value Ratio (LTV), the debtservicecoverageratio (DSCR) and Interest ServiceCoverageRatio (ISCR). Covenants can potentially...
Cul-de-sac Customer Damages for breach of contract Datum Debit Debtservicecoverageratio Decedent Declaration of Condominium Declaration of Restriction...
Spa Country Railway, a heritage railway in Victoria, Australia Debtservicecoverageratio Defense Supply Center, Richmond This disambiguation page lists...
percent, making the CMBS seem safer to credit rating agencies. The debtservicecoverageratio was 0.65, which meant the building's net cash flows could only...
leverage and risk becoming insolvent. Capital requirements govern the ratio of equity to debt, recorded on the liabilities and equity side of a firm's balance...
of investment approach. It is also used in conjunction with the debt-coverageratio that many commercial bankers use. The mortgage constant is commonly...
that affect the probability of sovereign debt rescheduling are: Debtserviceratio Import ratio Investment ratio Variance of export revenue Domestic money...
The European debt crisis, often also referred to as the eurozone crisis or the European sovereign debt crisis, was a multi-year debt crisis that took...
the value of the collateral. Thus, nonrecourse debt is typically limited to 50% or 60% loan-to-value ratios, so that the property itself provides "overcollateralization"...
basis Fisher equation Crowding out Annual percentage rate Interest coverageratio Investment Foreign direct investment Gold as an investment Over-investing...
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