In economics and government finance, debt service ratio is the ratio of debt service payments (principal + interest) of a country to that country's export earnings.[1] A country's international finances are healthier when this ratio is low.
"Responding to Fed rate actions, the household debt service ratio was an unparalleled 13.6% in the second quarter, 1.3% greater than the old mark set three years ago.
Metrics include debt-to-income ratio (combined total of residential mortgages, lines of credit and other consumer loans as a percentage of personal disposable income); debt service ratio (interest and principal payments as a percentage of income) ...
have a debt-service coverage ratio of 4 ($20 million divided by $5 million = 4.) A debt service coverage ratio of two is generally considered acceptable assuming the other tests of safety discussed have been met; the higher the debt service ratio, ...
See also: Income, Debt service, Ratio, Cover, Share
 
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