pre-tax debt service coverage
Definition
Indicator of a firm's ability to cover its interest income and short-term debt obligations before payment of income tax. Formula: (Pre-tax income + depreciation + amortization + interest expense – interest income) ÷ annual debt service. See also debt service coverage, and post tax debt service coverage.
pre-tax debt service coverage is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
pre-tax debt service coverage appears in the definition of the following term: post tax debt-service coverage
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