1. Home
  2. Tools
  3. Finance
  4. Company
  5. Debt Coverage Ratio Calculator
Share

Debt Coverage Ratio Calculator

Updated: Jun 10, 2018
FINANCE   COMPANY  
Debt Coverage Ratio Calculator is a tool that calculates how much net operating income a firm can generate compared to the debt payment it has to make in the same period
Debt Coverage Ratio:
..

Background Information

What is Debt Coverage Ratio?
The Debt Coverage Ratio or Debt Service Coverage Ratio (DSCR) is a measure of the cash flow available to pay current debt obligations. It compares the subject net operating income to the proposed mortgage debt service (annual basis).
Formula
DSCR = Net operating income / Total debt service
Example
A company shows its income statement with an operating income of $200,000. For the same period the debt payment is $35,000. According to the above formula, the company would show a debt coverage ratio of 5.71.
 

History

Jun 10, 2018
Tool Launched
Created: Jun 10, 2018
Online Tool Designed For: Windows, OS X, Android, iOS, Linux
➤