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What is the importance of Debt Service Coverage Ratio?

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تم إضافة السؤال من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
تاريخ النشر: 2014/09/03
Rajdeep Bele
من قبل Rajdeep Bele , Branch Manager , The Catholic Syrian Bank

In pure term the method which calculate the interest payment capacity of a firm/company

The debt coverage ratio is used in banking to determine a companies ability to generate enough income in its operations to cover the expense of a debt. On a broader level, it may also be used internally by a company for the same reason.

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