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The '''debt service coverage ratio''' ('''DSCR'''), known as "debt coverage ratio" (DCR), is the ratio of operating income available to [[debt servicing]] for interest, principal and lease payments. It is a popular [[Benchmarking|benchmark]] used in the measurement of an entity's (person or [[corporation]]) ability to produce enough cash to cover its debt (including lease) payments. The higher this ratio is, the easier it is to obtain a loan. The phrase is also used in [[Commercial Banking|commercial banking]] and may be expressed as a minimum ratio that is acceptable to a lender; it may be a loan condition. Breaching a DSCR covenant can, in some circumstances, be an act of [[Default (finance)|default]].
==Uses==
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