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Debt Service Coverage Ratio = Interest payable on debt/Net Profit

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Debt Service Coverage Ratio = Interest payable on debt/Net Profit

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Debt Service Coverage Ratio

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Interest coverage ratio, is net operating income + accrual/ interest

That is whether the company can cater for the interest portion.

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It’s a ratio among Net Operating Income and the debt service. It's used to determine profitability after paying debt service.

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