Ratio Analysis

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Ratio Analysis

debt service coverage ratio


• The debt service coverage ratio (DSCR) compares a business's level of
cash flow to its debt obligations. Lenders typically calculate DSCR by
dividing the business's annual net operating income by the business's
annual debt payments
Debt Service Coverage Ratio (DSCR) =

Business’s Annual Net Operating Income


   Business’s Annual Debt Payments(i.e. Principal+Interest   
Example.

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