Debt Service
Debt service refers to the series of payments of principal and interest on a loan or other obligation.
Debt service cover ratio (DSCR)
The debt service cover ratio (DSCR) is a measure of cash inflows available to pay debt compared to the repayments that are due. It is also sometimes refered to as annual debt service cover ratio (ADSCR).
Debt Service Coverage Ratio
Debt Service Coverage Ratio definition :
Earnings before interest and income taxes, divided by interest expense plus the quantity of principal repayments divided by one minus the tax rate.
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Debt Service Coverage
Debt Service Coverage definition :
The ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt.
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Debt Service Coverage Ratio
This is measured the other way around and measures the ratio of net income to debt service. it is widely used to measure the strength of mortgage investments.
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debt service
The total of interest and principal payments required to be paid on loans payable.
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debt service coverage
Corporate finance: amount, usually expressed as a ratio, of cash flow available to meet annual interest and principal payments on debt, including sinking fund payments. See also fixed-charge coverage .
Debt service parity approach
Payment alternatives that provide the firm with the exact same schedule of after-tax debt payments (including both interest and principal).
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Debt service
Definition 1.
Interest payment plus repayments of principal to creditors (retirement of debt).
Definition of
debt service
Finance
combined interest and principal due on money borrowed the payments due under a loan agreement, i.e. interest payable and payments of principal ...
Debt Service
Payments due under debt contracts. This includes payment of interest as it becomes due and payments of the original amount borrowed (principal).
Debt service ratio
Definition: The ratio of interest and principle payments as a proportion of exports for a given year.
Related glossary term: ...
DEBT SERVICE COVERAGE RATIO (DSCR) - The annual net operating income from a property divided by annual ...
DEBT SERVICE FUND - Fund whose PRINCIPAL or INTEREST is set aside and accumulated to retire DEBT.
ANNUAL DEBT SERVICE - Monthly loan payments (principal and interest, if any) times 12 months.
ANNUAL EARNINGS CHANGE - (%) The historical earnings change between the most recently reported fiscal y...
Debt service parity approach
An analysis wherein the alternatives under consideration will provide the firm
with the exact same schedule of after-tax debt payments (including both interest and principal).
Earning power ...
Debt service
Interest payment plus repayments of principal to creditors, that is, retirement of debt.
Debt service parity approach ...
Debt Service Coverage Ratio (DSCR) A ratio used to assess the financial ability of a borrower to meet debt obligations.
debt service coverage ratio
A simple comparison of the cash available to make principal and interest payments to the bank or to bond holders with the amount of those required principal and interest payments.
Debt Service
Cash required by a corporation or municipality to cover all interest and principal payments due in a given year, including sinking fund payments.
Debt Service Fund
Fund whose PRINCIPAL or INTEREST is set aside and accumulated to retire DEBT.
Debt Service
The schedule for repayment of interest and principal (or the scheduled sinking fund contribution) on an outstanding debt.
Debt Service - the regular payments required to keep a loan current.
Debt Service
The yearly amount needed to make interest and current maturities of principal payments on a bond issue.
See: Ability To Pay ...
DEBT SERVICE - The periodic payments (principal and interest) made on a loan.
Debt Service Reserve Fund
A bank trustee account established by the trust indenture and used as a backup security for an issuer's bonds.
DEBT SERVICE " The yearly amount of interest and principal payable on a bond issue.
Debt Service Coverage Ratio (DSCR): A quantitative measure used by lenders to determine whether a project's prospective net cash flow from operations can support (make timely service payment on) a given amount of debt at the indicated potentially ...
DEBT SERVICE FUNDS - Debt service funds are used to account for the accumulation of resources for, and the payment of, general long-term obligation principal and interest. Refer to GOVERNMENTAL FUNDS.
Debt Service Coverage. The borrower's annual net operating income before debt service and taxes divided by the annual debt service. A measure of how safe the loan is to the lender.
Debt service ratio - The measurement of debt payments to gross income.
Gross Debt Service Ratio (GDS): The percentage of gross annual income required to cover payments associated with housing (mortgage principal and interest, taxes, secondary financing, space heating, and 50% of condominium fees, if applicable).
Level debt service
A municipal charter provision that debt payments must be relatively equal from year to year so that required revenue projections are easier.
Total Debt Service
The ratio of a borrower's total monthly debt as compared to his or her monthly gross income. Lenders use this ratio to determine how much the loan applicant is allowed to borrow.
ANNUAL DEBT SERVICE - See: DEBT SERVICE.
ANNUAL FEE - (1) The fee charged by the MSRB on an annual basis to broker-dealers that engage in municipal securities activities.
Monthly debt service
Monthly payments required on credit cards, installment loans, home equity loans, and other debts but not including payments on the loan applied for.
Monthly total expenses ...
Debt services default simply means that the borrower has not made a payment on the given date, without giving the lender sufficient prior warning, in which case they may happily give an extension if there is no major cause for concern.
Debt service ratios
B-16.03
Analysis of receivables and inventory turnover ...
Debt Service - Refers to the yearly obligation of interest and principal payable on a bond issue. Sometimes, the term is used collectively to refer to all debts outstanding.
Debt service ratios are ratios that are designed to test a company’s ability to generate sufficient cash flow from operations to satisfy debt obligations.
Debt-to-equity ratio ...
Debt Service
The amount of money required for the payment of current interest and principal on a long-term debt.
Depreciation
The expense deduction on an income statement allowing for gradual wearout of a fixed asset.
Debt Service:
Principal Repayments plus Interest Payable; usually expressed as the annual dollar/currency amount per calendar or financial year.
Debt: ...
Debt Service
Cash required over a given period for the repayment of interest and principal on a debt.
Understanding Credit Card Interest
Forces Behind Interest Rates
Interest Rates And Your Bond Investments ...
Debt Service Ratio
The ratio of a borrower's interest and principal amortization payments to the funds available for making payment.
TDS - Total Debt Service Ratio - A debt service measure that financial lenders use as a rule of thumb to give a preliminary assessment of whether a potential borrower is already in too much debt.
Debt service
The payments made by a borrower on its debt, usually including both interest payments and partial repayment of principal.
Debt sustainability ...
Bond with a stream of coupon payments that remain the same throughout the life of the bond.
Level debt service ...
CADS See Cash Available for Debt Service. CAGRSee: Compound Annual Growth Rate CAMPSSee: Cumulative Auction Market Preferred Stocks Capex See: Capital expenditures CAPMSee: Capital asset pricing model CAPSSee: Convertible ...
The conditions often include an historic and forecasted earnings coverage of debt service on the outstanding and the additional bonds. Additional bonds are usually, but not necessarily, on a parity with outstanding bonds.
Economic risk In project financing, the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance costs and its debt service requirements.
Additional bonds test A test for ensuring that bond issuers can meet the debt service requirements of issuing any new additional bonds. Additional hedge A protection against fallout risk in the mortgage pipeline.
debt service A series of periodic interest and principal payments on a debt. debt service coverage A measure of a company's or individual's ability to repay debt. Debt service...
Legal risk The risk associated with the impact of a defect in the documentation on cash flow or debt service. Legal transfer A stock transaction that requires special documentation in addition to standard stock or bond power to be legally valid.
Most importantly, it is used to determine the maximum amount of debt the project company can have and debt repayment profile, so that in any year the debt service coverage ratio (DSCR) should not exceed a predetermined level.
Cash Flow: As an investment term, cash flow means the amount of cash received annually from an investment, which is the annual net income from the property less the annual debt service on the property.
Cash Available for Debt Service
Ratio of cash assets to debt service (interest plus nearby principal). Used in evaluating the risk of a project or firm.
Allowance for uncollectibles - bad debt service.
Ancillary services - those services other than room, board, and medical; such services as laboratory, radiology, pharmacy, ...
Level debt service means that redemption is carried out by equal periodic payments of interest and capital over the term of the loan, while the redemption share increases annually in the amount of the interest saved.
Revenue Bond - A bond in which the debt service is payable solely from the generated revenue associated with the operation of the project being financed, a category of facilities or from other non-tax sources.
This term is usually connected with revenue and corporate bonds. It indicates the margin of safety for payment of debt service, reflecting the number of times by which earnings for a period of time exceed debt service payable in such period.
 See also: Stock split, Collar, Escrow, LIBOR, Limit Order
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