Debt coverage ratio shows a company's ability to pay its debts. The debt coverage ratio compares the cash flow the company has to the total amount of debt the company must still repay. A debt coverage ...

Interest coverage ratio is a measure that assesses a company's ability to manage the cost of its debt. Both investors and bank lenders use the interest coverage ratio to assess a company's financial ...

Analyzing financial information is a critical part of being a business owner. One of the ways to monitor the financial performance of your company is through ratios. Using ratios is a quick way for ...

DSCR measures if a company earns enough to cover its debts. A DSCR below 1 indicates a company cannot fully cover its debt payments. Investors should track DSCR over time, not just at one point. The ...

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Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

We often judge a company on the basis of its sales and earnings. These, however, may not be enough. Sometimes, a stock gets a boost if these numbers climb year over year or surpass estimates in a ...

In finance, debt is a powerful tool—it can fuel massive growth for a business or allow a real estate investor to acquire a portfolio of assets. But debt, like any tool, must be managed with extreme ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...