A company debt service coverage ratio (DSCR) measures:
✓ Correct Answer: Option B
DSCR = Net Operating Income / Total Debt Service. >1 means sufficient cash flow to cover debt payments. Lenders typically require DSCR > 1.2-1.5 for loan approval.
DSCR = Net Operating Income / Total Debt Service. >1 means sufficient cash flow to cover debt payments. Lenders typically require DSCR > 1.2-1.5 for loan approval.