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Debt-Service Coverage Ratio gives an indication of the cash flow available to meet the interest and principal payments on a debt.

 It is easier to convince the lender if:

 

DSCR >1

 

DSCR <1

 

DSCR =0

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/05/28
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, Option1 is the right answer.

Paolo Borchetta
by Paolo Borchetta , Managing Director , NIMM International Mauritanie Mining

>1, albeit in certain industries it is a very difficult target to achieve S&P500 for1Q2015 reported a ratio of0.31

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

DSCR >>>>>>>>>>>>>>>>>>>>>>>>>>>>>1

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