DSCR stands for Debt Service Coverage Ratio. DSCR is a financial ratio used to measure a company's ability to pay its debt obligations. It is calculated by dividing the company's net operating income by its total debt service. A DSCR of 1 or higher indicates that the company is generating enough income to cover its debt obligations. Lenders typically require a minimum DSCR of 1.25 to 1.5 before approving a loan. For example, if a company has a net operating income of $100,000 and total debt service of $80,000, its DSCR would be 1.25.

A One Advisory Interview Questions: What is DSCR?

Asked inA One Advisory,Associate Credit Analyst

What is DSCR?

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DSCR stands for Debt Service Coverage Ratio.

DSCR is a financial ratio used to measure a company's ability to pay its debt obligations.
It is calculated by dividing the company's net operating income by...read more

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