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.

DSCR Formula The first step to calculating the debt service coverage ratio is to find a company’s net operating income.

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 total-debt-to-total-assets ratio or assets to liabilities ratio, is used to measure a company's performance. Here's how to calculate and why it matters.

Learn how to use the debt-service coverage ratio to determine if a company is able to pay its loans.

Explore the Interest Coverage Ratio, a crucial financial metric, to gauge a company's ability to meet its debt obligations.

An interest coverage ratio lower than 1.0 implies that the company is unable to fulfill its interest obligations and could default on repaying debt.

The debt-service coverage ratio, or DSCR, is a powerful tool investors can use to analyse whether a company can keep up with its debt repayments.

How to calculate debt-service coverage ratio There are two main components in how to calculate DSCR: a company’s annual net operating income and its annual debt service.

DSCR Formula The first step to calculating the debt service coverage ratio is to find a company’s net operating income.