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Debt Coverage Ratio

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Jul 24, 2020, 6:28:07 PM
Created by
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Jul 31, 2015, 10:58:28 PM
Property Value Estimate=Net Operating IncomeInterest Payment
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Operation Management Ratio Debt
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a839d9c4-37d7-11e5-a3bb-bc764e2038f2

The debt coverage ratio is used in banking to determine a companies ability to generate enough income in its operations to cover the expense of a debt. On a broader level, it may also be used internally by a company for the same reason.

Resource:

  • Dopson, Lea R., and David K. Hayes. Managerial Accounting for the Hospitality Industry. Hoboken, NJ: Wiley, 2009. Print.
  • "Debt Coverage Ratio." FinanceFormulas.net. N.p., n.d. Web. 08 Aug. 2015.
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