Term of the Day: Debt-Service Coverage Ratio (DSCR)

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	INVESTOPEDIA Term Of The Day November 12, 2015 Debt-Service Coverage Ratio (DSCR) In corporate finance, the Debt-Service Coverage Ratio (DSCR) is a measure of the cash flow available to pay current debt obligations. The ratio states net operating income as a multiple of debt obligations due within one year, including interest, principle, sinking-fund and lease payments. In government finance, it is the amount of export earnings needed to meet annual interest and principal payments on a country's external debts. In personal finance, it is a ratio used by bank loan officers to determine income property loans. A DSCR greater than 1 means the entity – whether a person, company or government – has sufficient income to pay its current debt obligations. A DSCR less than 1 means it does not. Breaking It Down: A common practice during periods of home price appreciation is for investors and speculators to... Read More Related to "Debt-Service Coverage Ratio (DSCR)" The Income Property: Your Late-In-Life Retirement Plan This article will describe how much you can expect to invest and earn, how to choose a location... Read More Zooming In On Net Operating Income Each and every earnings season, there are large-cap companies missing their estimated targets. On the day of the announcement... Read More Analyze Investments Quickly With Ratios Ratios can be invaluable tools for making an investment decisions. Even so, many new investors would rather... Read More Recently Added Definitions Operating Cost Operating costs are expenses associated with the maintenance and administration of a business on a... Read More Equity Market The market in which shares are issued and traded, either through exchanges or... Read More Related Definitions Interest Coverage Ratio Net Operating Income - NOI Liquidity Coverage Ratio - LCR Solvency Ratio Income Property Mortgage Past Terms of the Day Cost, Insurance and Freight - CIF Brazil, Russia, India And China - BRIC Net Present Value - NPV Internal Rate Of Return - IRR International Financial Reporting Standards - IFRS You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Manage Subscriptions Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: