Please explain me DSCR ratio???? Anybody...
Menu
DSCR RATIO
Replies (2)
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.
| 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.
Recent Threads
- TDS on Joining Bonus
- How to complete form10E Table details for the year
- How to submit ITR for old F&O losses
- Can an Software Engineer be termed as a workman an
- PF withdrawal in IT
- Resolution of Potential Double Taxation on NSC Int
- LTCG reporting in ITR2
- Pls advice to sell and we can make invoice to susp
- Most reliable solution to export offline OST to PS
- Sale of Mutual fund by NRI
Related Threads
CAclubindia
