write short note on debt sevice coverage ratio
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A debt service coverage ratio of 1 or above indicates that a company is generating sufficient operating income to cover its annual debt and interest payments. As a general rule of thumb, an ideal debt service coverage ratioshould be 2 or higher. It suggests the company is capable of taking on moredebt.
hope it helps u a lot
A debt service coverage ratio of 1 or above indicates that a company is generating sufficient operating income to cover its annual debt and interest payments. As a general rule of thumb, an ideal debt service coverage ratioshould be 2 or higher. It suggests the company is capable of taking on moredebt.
hope it helps u a lot
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