Formula to
calculate debt
service coverage ratio:
Debt Service Coverage
Ratio =
net operating income / (interest +
current portion of LTD)
Debt
service coverage
ratio definition and explanation:
The debt service coverage
ratio is also known as the debt coverage
ratio, debt service capacity ratio
or DSCR.
The debt service coverage
ratio shows the ability to meet annual interest
and debt repayment obligations.
A debt service coverage
ratio of less than 1:1 means that it does not
have sufficient income to meet its debt demands.
The cash debt coverage ratio is listed in our liquidity
ratios.
Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
calculate, define and explain.
See our list of
ratio
calculators and our
"Financial
Statement Analysis including over 200 ratios"
book and spreadsheet system.
Click here
to order excel
accounting spreadsheet to calculate 15 ratios with
formulas, definitions, calculations, charts, and
explanations for each ratio.
Order free 3 ratio
calculator spreadsheet. Current, quick and
debt-to-equity ratios with formulas, calculations,
charts and explanations. Email
us at 3ratios@bizwiz.ca. | 
