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 Glossary   >   D   >   "Debt-service coverage ratio" Definition   

        Debt-service coverage ratio

Earnings before interest and income taxes plus one-third rental charges, divided by interest expense plus one-third rental charges plus the quantity of principal repayments divided by one minus the tax rate.

Debt-service coverage ratio
Glossary   

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Debt-service coverage ratio - Earnings before interest and income taxes plus one-third rental charges, divided by interest expense plus one-third rental charges plus the quantity of principal repayments divided by one minus the tax rate.


Debt-service coverage ratio : earnings before interest and income taxes plus one-third rental charges, divided by interest expense plus one-third rental charges plus the quantity of principal repayments divided by one minus the tax rate.