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The debt service coverage ratio (DSCR), also known as "debt coverage ratio" (DCR), is a financial metric used to assess an entity's ability to generate enough cash to cover its debt service obligations, such as interest, principal, and lease payments. The DSCR is calculated by dividing the operating income by the total amount of debt service due.
What is a good debt-service coverage ratio? Most lenders want to see a debt-service coverage ratio of at least 1.25. But, lender requirements will vary depending on the type of business loan and ...
Minimal DSCR set for a project depends on riskiness of the project, i.e. on predictability and stability of cash flow generated by it. Related to this is the Project life cover ratio (PLCR), the ratio of the net present value of the cash flow over the remaining full life of the project to the outstanding debt balance in the period. It is a ...
Loan Life Coverage Ratio LLCR is a ratio commonly used in project finance.The ratio is defined as: Net Present Value of Cashflow Available for Debt Service ("CFADS") / Outstanding Debt in the period.
In economics and government finance, a country’s debt service ratio is the ratio of its debt service payments (principal + interest) to its export earnings. [1] A country's international finances are healthier when this ratio is low.
Liquidity is a prime concern in a banking environment and a shortage of liquidity has often been a trigger for bank failures. Holding assets in a highly liquid form tends to reduce the income from that asset (cash, for example, is the most liquid asset of all but pays no interest) so banks will try to reduce liquid assets as far as possible.
DSCR may refer to: Daylesford Spa Country Railway, a heritage railway in Victoria, Australia; Debt service coverage ratio; Defense Supply Center, Richmond
A cash sweep, or debt sweep, is the mandatory use of excess free cash flows to pay down outstanding debt rather than distribute it to shareholders.. Firms always have the option to pay down debt with excess cash, but they do not always choose to do so.