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Dictionary by pitch.dog
Financial ratios & operating efficiency · Core

Debt service coverage ratio

Also called: DSCR

ELI5

Cash or earnings available for debt service divided by required debt payments.

Used in conversation

“The number is useful only if everyone calculates debt service coverage ratio the same way.”

Pitch context

You will see “Debt service coverage ratio” in financial models, budgets, board packs and investor materials when the discussion reaches financial ratios & operating efficiency.

Why it matters: In financial ratios & operating efficiency, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

When the words have to travel

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Sources & evidence · 5

Direct term-level sources and supporting source families.