Please ensure Javascript is enabled for purposes of website accessibility
Search
Accessibility Menu

What Is the Debt-Service Coverage Ratio?

By Motley Fool Staff – Updated Aug 21, 2024 at 9:36AM

Key Points

  • DSCR measures a company's ability to repay its debts, critical for loans and investment decisions.
  • A DSCR below 1 indicates insufficient income to cover debts, making financial caution advisable.
  • Consistent DSCR monitoring is essential as it impacts a firm’s creditworthiness and investment viability.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

Our Guides

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.