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Term of the Day
BusinessDictionary.com
debt service coverage
Definition
Indicator
of a firm's
ability to pay
its loan(s).
Formula
:
Net income
÷
annual debt service
.
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Nearby Terms
debt rescheduling
debt restructuring
debt restructuring fraud
debt security
debt service
debt service constant
debt service coverage
debt service coverage ratio
debt service fund
debt service requirements
debt service reserve fund
debt to worth ratio
Debt Trap
Popular 'Accounting & Auditing' Terms
accounting
payment terms
accounting concepts
financial management
marginal benefit
letter of credit (L/C)
asset
revenue
pro forma invoice
fixed cost
Related Terms
pre-tax debt service coverage
Mentioned in these terms
debt service coverage ratio
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