Business Studies, asked by aju2842, 11 months ago

write short note on debt sevice coverage ratio

Answers

Answered by ammu1234562

1

hi.

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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