Electronica Finance Credit Manager Interview Questions and Answers

DSCR stands for Debt Service Coverage Ratio. It is a financial ratio used to measure a company's ability to pay its debts.

• DSCR is calculated by dividing a company's net operating income by its total debt service.

• A DSCR of 1 or higher indicates that a company is generating enough income to cover its debt obligations.

• Lenders often use DSCR to assess the creditworthiness of a borrower before approving a loan.

• For example, ...read more

Current Ratio is a financial ratio that measures a company's ability to pay its short-term liabilities with its current assets.

• Current Ratio = Current Assets / Current Liabilities

• A higher current ratio indicates a better ability to pay off short-term debts

• A lower current ratio may indicate liquidity issues

• Example: If a company has $100,000 in current assets and $50,000 in current liabilities, its current ratio would be