Debt Coverage Ratio, usually the abbreviation DCR is used. It is a term that indicates how many times the total income covers total interest payments and principal repayments. The indicator is similar to the interest coverage (TIE) ratio.
The indicator is one of the debt ratios (of long-term financial stability).
DCR = Net operating income / Property’s annual debt service (Interest payable + principal repayments)
Use of the DCR in practice: This ratio is important for the creditors of the enterprise.
You cannot contribute to the discussion because it is locked