Discussions
AMIT SAURAV

· started a discussion

· 1 Months ago

DSCR means to meet its current liabilities

Question:

DSCR indicates the ability of a company to

Options:
A)

Meet its current liabilities

B)

Service its shareholders

C)

Meet its long term debt obligations

D)

Raise further capital

E)

None of these

Solution:

The Debt Service Coverage Ratio (DSCR) Is a financial ratio that measures a company’s ability to service Its current debts by comparing Its net operating Income with Its total debt service obligations. In other words, this ratio compares a company’s available cash with its current interest, principle, and sinking fund obligations.

Knowledge Expert

· commented

· 1 Months ago

The Debt-Service Coverage Ratio (DSCR) is a measure of the cash flow available to pay current debt obligations. The ratio states net operating income as a multiple of debt obligations due within one year, including interest, principal, sinking-fund and lease payments.

All Rights Reserved Top Rankers