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Blog Image: Debt-Service Coverage Ratio (DSCR) Explained

Debt-Service Coverage Ratio (DSCR) Explained

What Is the Debt-Service Coverage Ratio (DSCR)? The debt-service coverage ratio applies to corporate, government, and personal finance. In the context of corporate finance, the debt-service coverage ratio (DSCR) is a measurement of a firm's available cash flow to pay current debt obligations. The DSCR shows investors whether a company has enough income to pay its debts. In the context of government finance, the DSCR is the amount of export earnings needed by a country to meet annual interest and principal payments on its external debt. In the context of personal fina...

October 1st, 2020 | (DSCR) Investor Loans , Debt-Service Coverage Ratio (DSCR) Explained