DSCR
Debt Service Coverage Ratio
Credit & DebtCash available for debt service divided by scheduled principal and interest payments. It measures whether operations generate enough cash to meet debt obligations as they fall due.
Formula
DSCR = (EBITDA - Tax) / (Interest + Principal Repayments)
Why it matters
Lenders live by this ratio. A DSCR below 1 means the borrower cannot service debt from operations and must refinance, sell assets, or default.
Indian example
Related terms
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