The Debt Service Coverage (DSC) or Debt Coverage Ratio is an important financial metric used to determine the financial health of an entity by comparing its operating income to its debt obligations.
The Debt Coverage Ratio (DCR) is a key financial metric used to assess the ability of income properties to cover their debt obligations. Calculated as the ratio of Net Operating Income (NOI) to Annual Debt Service (ADS), it plays a crucial role in mortgage underwriting.
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