Debt service coverage ratio (DSCR) measures your business’s debt obligations against its cash flow, and indicates your business’s ability to cover its existing debt obligations.

Most lenders want to see a debt-service coverage ratio of at least 1.25. But, lender requirements will vary depending on the type of business loan and lender you select.

Reviewed by David KindnessReviewed by David Kindness. The debt service coverage ratio (DSCR) is used in corporate finance to measure the amount of a company’s cash flow available to pay its ...

The debt-service coverage ratio is an easy-to-understand figure that tells investors whether a company is making enough money to pay its debts. In its simplest form, it’s the net operating ...

How do we determine what the DSCR is? For example, let’s say that the debt to service ratio for a mortgage is $100,000 annually and the lender wants a debt service coverage of 1.2.

Debt-service coverage ratio (DSCR) looks at a company's cash flow versus its debts. The ratio is used when gauging a business's ability to pay off current loans and take on future financing.

The debt service coverage ratio (DSCR) is used to measure a company’s cash flow available to pay current debt. Learn how to calculate the DSCR in Excel.