Debt Coverage Ratio Calculator
About Debt Coverage Ratio Calculator
The Debt Coverage Ratio Calculator is used to calculate the debt coverage ratio for a company.
Debt Coverage Ratio Definition
Debt Coverage Ratio is a measure of an entity’s ability to produce enough cash to cover its debt (including lease) payments. It is calculated as net operating income divided by total debt service. The debt coverage ratio is also known as debt service coverage ratio (DSCR).
The DSCR calculation formula is as follows:
DSCR = Net operating income / Total debt service