Zerodha Broker (Free Delivery)


Open Instant Account
market update arrow Looking to go omnichannel, BigBasket may seal deal with Tatas soon arrow Reforms in IPO rules discussed with investors from US, says Sebi arrow Withdrawals in global listed funds from Indian markets top $11 bn in cy20 arrow Sebi bars investment bankers from sharing bidding data with investors arrow Airtel foreign ownership puzzle stumps investors again, stock sheds gains arrow Schneider deal boosts L&T Q2 net profit to Rs 5,520 cr; revenue dips 12% arrow Indian refiners bet on petrochems to cater rising demand, avoid low margins arrow IPL 2020, RCB vs MI highlights: Mumbai wins by 5 wkts; seals playoff berth arrow Hero MotoCorp Q2 net profit surges 9% to Rs 964 cr on robust sales arrow No information on Aarogya Setu app creators, says Centre; CIC fumes arrow LIVE: India stands firm in Ladakh, will continue talks with China: Rajnath arrow Bharti Airtel to stay away from 5G auctions, as prices exorbitant: Vittal arrow Coronavirus LIVE updates: India Covid-19 cases cross 8 million-mark arrow Wall Street slumps as rise in coronavirus cases dims economic outlook arrow Young smokers three times more likely to die prematurely, study shows arrow Samsung Galaxy Tab A7: A worthy device you can use as a secondary screen arrow Bihar elections, rising Covid cases: Here's why Sensex tanked 600 pts today arrow Here's what to expect from Maruti Suzuki's Q2 results on Thursday arrow World Coronavirus Dispatch: UK starts real-time review of Moderna's vaccine arrow BoB Q2 preview: Lower treasury gain, elevated credit cost may cap profit arrow IndiGo Q2: Loss up to Rs 1,610 crore seen despite cost cutting measures arrow DATA STORY: Delhi sees worst spike; Punjab has worst fatality rate among states

Trading and Investment Terms

Debt Service Ratio

This ratio measures the net operating income available to pay the short-term debt. 

The DSCR is a useful benchmark to measure an individual or firm’s ability to meet their debt payments with cash.

A higher ratio implies that the entity is more creditworthy because they have sufficient funds to service their debt obligations to make the required payments on a timely basis.

The formula used for calculating the debt service coverage ratio is:
      DSCR = Net Operating Income / Total Debt Service

Generally, the debt service coverage ratio is calculated as 
    DSCR = (Annual Net Income + Interest Expense + Amortization & Depreciation + Other discretionary and non-cash items like non contractual provided by the management)/ (Principal Repayment + Interest Payments + Lease Payments)

Thus, to calculate the debt service coverage ratio of a company or business entity, it is, at the first point, essential to calculate the net operating income of the company.

Latest News हिंदी समाचार