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DSCR RATIO

yatish kotiyan (Articled Clerk) (372 Points)

03 September 2009

Please explain me DSCR ratio???? Anybody...

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2 Replies

Vinay Desai (Treasury) (32 Points)
Replied 05 September 2009

DSCR (Debt Service Coverage Ratio) is a ratio which is often looked into by Banks when they evaluate a credit proposal. Each bank has a benchmark DSCR below which they get a little reluctant to grant a loan to a company. It shows the debt paying capacity of the company. In the future the bank should get its loan back and as such the company should not default on its obligations. It is calculated by dividing the net operating income by the total debt of the company. hope the info helps answers your query.

yatish kotiyan (Articled Clerk) (372 Points)
Replied 25 September 2009

Originally posted by :Vinay Desai
"	DSCR (Debt Service Coverage Ratio) is a ratio which is often looked into by Banks when they evaluate a credit proposal. Each bank has a benchmark DSCR below which they get a little reluctant to grant a loan to a company. It shows the debt paying capacity of the company. In the future the bank should get its loan back and as such the company should not default on its obligations. It is calculated by dividing the net operating income by the total debt of the company. hope the info helps answers your query.	"

thanks for replying but i need som\e more clarity on caculation of DSCR ratio.