How does the debt coverage ratio relate to shareholder returns?

Jun 28, 2022 ... What is a good debt-service coverage ratio? Most SBA lenders will want a debt-service coverage ratio (DSCR) above at least 1.25. This means ... Jul 19, 2022 ... It is advisable to maintain your DSR between 30 to 40% range at all times. This indicates that you have more disposable income than debt ... DSCR is a metric used by lenders to determine loans on income-generating properties. It is the required cash flow for paying current debts (interest, ... The standard minimum for agriculture is 1.25:1, which means that for every dollar of debt, the farm is generating $1.25 to cover its financial obligations, she ... Mar 3, 2025 ... The debt-service coverage ratio (DSCR) formula helps lenders determine whether they should extend loans to borrowers. In general, most lenders prefer a debt coverage ratio (DCR) or debt service coverage ratio (DSCR) of at least 1.20x. However, certain types of loans will go ... When deciding whether to issue a loan to a borrower, one of the most important aspects a lender looks at is DSCR, or Debt Service Coverage Ratio. Dec 5, 2024 ... What is a good debt service coverage ratio? · Less than 1 · = 1 · More than 1. The most important thing to remember is that a “good” DSCR depends wholly on the requirements of the lender for the loan product in question. A widely accepted ... Apr 3, 2024 ... What is a good debt service coverage ratio? There is no universal standard for DSCR; however, most lenders want to see at least a 1.25 or 1.50.