The Debt-Service Coverage Ratio (DSCR)
The DSCR measures the cash flow available to “service” a company’s debt.
The ratio helps banks evaluate the credit worthiness of an organization that is applying for a loan. It also tips off investors to companies carrying a debt level that could be destructive.
Operating leverage tells investors about the relationship between a company's fixed and variable costs. The higher a company's fixed costs in relation to its variable costs, the greater its operating leverage, and vice versa.
Learn about the differences between these two words and how each one is used in the stock market.
Amount of profit realized from a business's operations after taking out operating expenses - such as cost of goods sold (COGS) or wages - and depreciation.
Find out how OCF can be used to value a company based on their ability to generate cash from operation.
Otherwise known as the "bottom line", net income is the most commonly used indicator of a company's profitability. Learn more about how it an investor's decision to own or sell a stock.
Learn about the different types of cash flows and the importance for businesses to properly manage their cash flows.
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