DSCR

Debt service coverage ratio: cash available for debt service over interest plus scheduled principal. The lender’s first number.

Also called Debt service coverage ratio

DSCR in round numbers

Say cash available for debt service is 120 against interest and scheduled principal of 80, for a DSCR of 1.5x. Hanil’s profile shows interest expense of about 1.1m but no scheduled principal figure, so this uses round numbers instead.

Cover over debt service
firstCash available 120
÷Interest and principal 80
=DSCR 1.5x

FCCR · Covenant headroom · Maturity wall · Interest coverage · Free cash flow · All of the glossary