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What is the debt service coverage ratio?

Credit Analysis Credit Risk
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Question added by Abdullah Mahhaden, CFA, CPA , Assurance Manager , Grant Thornton
Date Posted: 2013/06/15
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md.rashed iqbal mollick
by md.rashed iqbal mollick , Reseach Assistant , Emerging credit rating limited

it is the amount of cash flow available to meet annual interest and principal payments on debt.

Habibullah Usman
by Habibullah Usman , General Manager , Venkys Italy Marmo S.r.l.

In corporate finance, DSCR (debt service coverage ratio) is the amount of cash flow available to meet annual interest and principal payments on debt.
This ratio should ideally be over1.
In general, it is calculated by: Net Operating Income / total debt service

Imtiaz Hussain Bugti
by Imtiaz Hussain Bugti , Senior Officer, Credit & Risk , Gulf Finance Corporation - Jeddah

I agreed on above three answers................

sana imam
by sana imam , manager , Union Bank of India

the amount of cash available with the company annually to meet is debt obligations- interest and principal repayment 

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