Debt coverage ratio shows a company's ability to pay its debts. The debt coverage ratio compares the cash flow the company has to the total amount of debt the company must still repay. A debt coverage ...

Interest coverage ratio is a measure that assesses a company's ability to manage the cost of its debt. Both investors and bank lenders use the interest coverage ratio to assess a company's financial ...

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Analyzing financial information is a critical part of being a business owner. One of the ways to monitor the financial performance of your company is through ratios. Using ratios is a quick way for ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Debt service coverage ratio (DSCR) is calculated by dividing your business’s total debt obligations by its net operating income. Many, or all, of the products featured on this page are from our ...

We often judge a company on the basis of its sales and earnings. These, however, may not be enough. Sometimes, a stock gets a boost if these numbers climb year over year or surpass estimates in a ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

In 2014, the Liquidity Coverage Ratio (LCR) was a much-needed response to the liquidity crises that exacerbated the global financial meltdown. The regulation requires banks to hold enough high-quality ...

DSCR measures if a company earns enough to cover its debts. A DSCR below 1 indicates a company cannot fully cover its debt payments. Investors should track DSCR over time, not just at one point. The ...