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Coverage Ratio Calculator
COVERAGE RATIO DEFINITION:
The Coverage Ratio Calculator is a financial calculator will easily calculate the coverage ratio for a company. The formula for coverage ratio is net operating income divided by total debt service. The coverage ratio is sometimes referred to as the debt service coverage ratio (DSCR) or the interest coverage ratio and is used many times by lenders and commercial bankers to asses a company’s ability to service their debt using proceeds from their net operating income. The higher the coverage ratio is then generally speaking the better off a company will be as they will be able to make their debt payments using funds from their net operating income. Try out the online coverage ratio calculator now!
COVERAGE RATIO FORMULA:
Coverate Ratio = Net Operating Income/Total Debt Service