Focus on the pronunciation of debt coverage ratio
English definition of “debt coverage ratio”
debt coverage ratio
noun [C] (abbreviation DCR, also debt-service coverage ratio, also debt service ratio)
› FINANCE a measurement used to decide whether a person, company, or country can afford to pay back a loan, calculated by dividing the income that is available by the total amount of payments owed each year for the loan: A debt coverage ratio of less than 1 indicates that there is not enough cash flow to pay the property's expenses and mortgage payments.