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.

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 current debt payments or obligations.

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.

The Interest Coverage Ratio, often abbreviated as ICR, is a financial indicator that gauges a company’s capacity to pay the interest on its outstanding debt.

Rent is central to a landlord’s borrowing costs, especially when their property is financed with a debt-service coverage ratio (DSCR) loan. Understanding how DSCR works may offer renters ...

Fixed-charge coverage ratio. A measure of a firm's ability to meet its fixed-charge obligations: ... divided by total debt service (annual principal and interest payments).

How the Times Interest Earned Ratio Works. The times interest earned ratio (TIE), or interest coverage ratio, tells whether a company can service its debt and still have money left over to invest ...

The calculated EBITDA Interest Coverage Ratio for Company XYZ is 4, meaning that for every dollar of interest expense, the company generates $4 in EBITDA.This is a positive sign and indicates that ...

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. If ...