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Apr 2026

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DSCR

Also known as: Debt Service Coverage Ratio
Published on 2024-07-22 | Last edited on 2024-09-08
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Definition

The Debt-Service Coverage Ratio (DSCR) assesses a company's ability to pay its debt using cash flow. It's calculated by dividing net operating income by total debt service, including principal and interest. This ratio shows if a company earns enough to cover its debt obligation.

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