Home
E-Mail

Debt Service Coverage Ratio Financial Glossary

What is it? A simple comparison of the cash available to make principal and interest payments to the bank or to bond holders with the amount of those required principal and interest payments. Debt service coverage is expressed as a ratio with the annual net income divided by the annual debt service requirement.

Finance Term Definition Added By: Xavier

The Debt Service Coverage Ratio definition has been viewed 4101 Time(s)!




Send To Friends!

If you'd like to send the Debt Service Coverage Ratio definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -


We hope you now understand the meaning of Debt Service Coverage Ratio. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Finance Terms:

Financial Term Installment Debt is A debt or loan that is repaid in successive payments over a period of time. Examples of consumer installment debt include payments for car, boat, student and private (unsecured) loans.

Financial Term Preference Share is A share in a listed company that pays the holder a fixed rate of interest rather than a dividend. Preference shareholders are also paid out first if a company is liquidated.

Financial Term payment intangible is A general intangible under which a debtors principal obligation is a monetary obligation from a third party. A category of personal property collateral defined by the 2000 revisions to Article 9 of the Uniform Commercial Code.

Financial Term Roth IRA is A tax-deferred retirement account. Contributions to a Roth IRA are not tax deductible, but there is no tax on withdrawals as long as the taxpayer is age 59 and the account has been open for five years.

Financial Term Loan is An advance of funds evidenced by a promissory note and requiring the recipient to repay the specified amount(s) under prescribed conditions.