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Real Estate Glossary

Debt-Coverage Ration (DCR)

inflation calculator
Richard Wilson
Written by Richard Wilson

This is the ratio that measures a firm’s available cash flow to pay its current debt obligations. The DCR shows whether or not a company has enough money to pay its debts, which proves useful for investors. To calculate the DCR, the net operating income must be divided by the total debt service.

This is the ratio that measures a firm’s available cash flow to pay its current debt obligations. The DCR shows whether or not a company has enough money to pay its debts, which proves useful for investors. To calculate the DCR, the net operating income must be divided by the total debt service.

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Richard Wilson

Richard Wilson

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