# Debt service coverage ratio (DSCR)

- Canonical URL: https://www.gerhardmerk.de/debt-service-coverage-ratio-dscr-2
- Post ID: 588174
- Modified: 2023-07-25T21:01:32+00:00
- Language: en

## Definition

Unless explicitly defined otherwise, this is the ratio of cash flow to a company's debt service (the amount of cash flow available to meet annual interest and principal payments on debt, including potential sinking fund payments) and thus a measure of the ability to service debt. A ratio of 1.3 means that cash flow in a period is thirty percent higher than the charges incurred in the same period for interest and principal payments on borrowed funds. - See asset-backed securities, debt management securitization. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1