Debt service coverage ratio is the amount of cash flow available to meet annual interest and principal payments on debt, including sinking fund payments.
In government finance, it is the amount of export earnings needed to meet annual interest and principal payments on a country's external debts.
In personal finance, it is a ratio used by bank loan officers in determining income
property loans. It meant to that the property is generating enough income to pay its debts.
It is calculated by:
