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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 .
(Definition of debt coverage ratio noun from the Cambridge Business English Dictionary © Cambridge University Press)
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