Categories
Resources for Accountants

DSCR (Debt Service Coverage Ratio) – Meaning, Formula, Calculation & Interpretations [Video]

DSCR (Debt Service Coverage Ratio) – Meaning, Formula, Calculation & Interpretations

In this tutorial, you will learn how to examine an organization’s Debt Service Coverage Ratio by understanding its meaning, formula, calculations, and interpretation. Additionally, you will also understand how to compute Colgate- Palmolive’s Debt Service Coverage Ratio in Excel.

You can download the Colgate Debt Service Coverage Ratio template from this link – https://www.wallstreetmojo.com/ratio-analysis-template/

What is Debt Service Coverage Ratio?
——————————————–
The Debt Service Coverage Ratio determines if a company’s operating income is sufficient to cover all of its debt-related obligations in a given year. Debt servicing includes not only interest but also a percentage of the principal to be repaid each year. It also includes previously agreed-upon lease payments.

Formula
——————————————–
DSCR Formula = Net Operating Income/Total Debt Service

Interpretation
——————————————–
– If the DSCR is less than 1.0, it indicates that the company’s operating cash flows are insufficient for Debt Servicing, signifying negative cash flows.
– From a bank’s perspective, the DSCR is a beneficial matrix, especially when giving loans against property.

For more details, you can refer to our article – https://www.wallstreetmojo.com/dscr-ratio-debt-service-coverage-ratio/

Connect with us!
YouTube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw
LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/mycompany/
Facebook ► https://www.facebook.com/wallstreetmojo
Instagram ► https://www.instagram.com/wallstreetmojoofficial/?utm_medium=copy_link
Twitter ► https://twitter.com/wallstreetmojo

Watch/Read More
  • Tags

Most Popular Posts Today

Difference between an auditor specialist and a company or management specialist [Video]
►
Categories
Resources for Accountants

Difference between an auditor specialist and a company or management specialist [Video]

Rachel is looking to "close the GAAP" on the difference between an auditor specialist and a company or management specialist. Check out her quick video explanation here! If you are interested in learning more, explore our eLearning course on Using the Work of Specialists: https://www.gaapdynamics.com/product/using-the-work-of-specialists/

Most Popular This Week

P&L Presentation Type based on your Audience (Natural Account vs. Functional) [Video]
►
Categories
Resources for Accountants

P&L Presentation Type based on your Audience (Natural Account vs. Functional) [Video]

Before compiling the P&L, you need to decide on the type of presentation (based on your audience): Natural Account, Functional or Hybrid. Free P&L Template shown in video: https://thefincontroller.com/p/types-of-incomestatemet-presentation Enroll in the FP&A Academy: https://controller-academy.com/courses/fpa-academy Time Stamps: 00:00 Intro 01:28 Company Profile 02:17 1. Natural Account P&L 04:26 2. Functional P&L 05:38 3. Hybrid P&L 09:08 How To Setup in NetSuite 10:29 How To Setup in QuickBooks Online ----------------------------------- Hang Out with me on social media: 📸 https://www.instagram.com/the_financial_controller/ 📱https://www.tiktok.com/@thefinancialcontroller https://www.linkedin.com/in/bill-hanna-cpa-7653a851/ DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week! All views expressed on my channel are mine alone. Not intended as financial or professional advice

Entrepreneurship Mistakes from Hell | How to Start a Startup [Video]
►
Categories
Resources for Accountants

Entrepreneurship Mistakes from Hell | How to Start a Startup [Video]

Embarking on the journey of entrepreneurship is akin to riding a roller coaster blindfolded—it's exhilarating, unpredictable, and fraught with potential pitfalls. While mistakes are an inevitable part of the entrepreneurial journey, some are more catastrophic than others. These "mistakes from hell" can derail even the most promising ventures, leaving entrepreneurs reeling and searching for ways to recover. Let's explore some of these missteps that have the potential to turn an entrepreneurial dream into a nightmare.