Debt Service

Debt service is the payment of interest on principal amount. Debt service is computed on yearly basis. Debt service is separately mentioned in Profit & Loss account by bankers & money lenders.

Debt Service Ratio or Interest Coverage Ratio

Shamsa Rafique Debt Service, Financial Statement Analysis

Debt Service Ratio or Interest Coverage Ratio: Definition: Interest coverage ratio is also known as debt service ratio or debt service coverage ratio. This ratio relates the fixed interest charges to the income earned by the business. It indicates whether the business has earned