Is it appropriate to compare debt coverage ratios across companies with different capital structures?

Whatever industry you're in, banks and lenders will look at your DSCR to determine whether you can pay back a loan. They usually want this ratio to be more than ... This is a measure of the strength of available cash relative to an entity's operations. Debt Service Coverage Ratio (Solvency) Formula: (Net Income + ... 1.20x – 1.50x: Lenders might accept these ratios for a simple asset with mostly “locked in” revenue, such as a small solar plant with rates and production ... Jun 18, 2019 ... Lenders use a number of factors to gauge your business's creditworthiness and “debt service coverage ratio” (or DSCR) is near the top of the ... What is a good DSCR? DSCR is a measure of the ability of a borrower to repay their loan. It's calculated by dividing the loan amount by annual housing ... Jul 19, 2020 ... Next, you are ready to calculate your DSCR which is your annual net operating income divided by your annual debt obligation. What is a Good Debt ... What is a Good Debt Coverage Ratio (DCR) By Industry? The below DCRs are indicative only, as each project will vary. Different industries have different risk ... Yes, a higher Debt Service Coverage Ratio is typically good. It indicates that a business or individual has more than enough income to cover debt payments, ... The higher the debt service coverage ratio is on your project, the easier it is to obtain good financing terms with a lender. Many lenders require a DSCR of ... Nov 23, 2021 ... The debt service coverage ratio real estate lenders want to see is 1.25 to 1.50 because, for them, that is a good debt service coverage ratio.