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Define “Debt Service Coverage Ratio” How is DSCR Calculated?

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Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/03
SREEDEVI SUNILKUMAR
by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline

Debt Coverage Ratio

 

Debt Coverage Ratio = Net operating income / Debt Service

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

OI / DEBT SERVICE COST 

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

The debt service coverage ratio is a financial ratio that measures a company's ability to service its current debts by comparing its net operating income with its total debt service obligations.

 

DSCR is calculated as follows:

debt service coverage ratio= operating income / total debt service costs

 

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