Overview

This Debt Service Coverage Ratio (DCSR) Template includes a debt schedule and income statement for a sample calculation of the debt service coverage ratio.

This Debt Service Coverage Ratio (DCSR) Template can be built upon to clearly present the important items of an income statement as well as the debt schedule to calculate the Debt Service Coverage Ratio. The ratio measures the ability of a company to pay its debt obligations using its operating income. DSCR is used to look at how solvent a company is, and how healthy is the current level of debt for the company. There are two formulas that can be used to calculate the debt service coverage ratio:

 

DSCR = EBITDA / (Interest + Principle)

or

DSCR = (EBITDA- Capex) / (Interest + Principle)

 

Where:

  • EBITDA = Earnings Before Interest, Tax, Depreciation, and Amortization
  • Principal = the total loan amount of short-term and long-term borrowings
  • Interest = the interest payable on any borrowings
  • Capex = Capital Expenditure
Share
Reviews Add a review
No reviews yet

More From Corporate Finance Institute®

Browse our top rated business templates. See All
REIT Financial Model Template
79
0
This REIT financial model template acts as a guideline for modeling a real estate investment trust (REIT). This model will…
Energy Industry Comps Template Energy Industry Comps Template
965
58
This energy industry comps template provides a guideline and example of what a comparables universe would look like for a…
Financial Institution Dividend Discount Model
1,571
70
The financial institution dividend discount model uses future dividends to find the implied share price. This model is based on…
Loan Payment Calculator
1,255
0
The loan payment calculator allows users to determine the principal and interest payment each month until the full balance of…
DDM - Excel Dividend Discount Model Template
1,383
96
The dividend discount model template allows investors to value a company base on future dividend payments. This is based on…
Non-directional trading strategy template Non-directional Trading Strategies Template
1,173
0
The non-directional trading strategies template allow users to determine the profit when buying options. This template focuses on non-directional strategies…
See All