Question

An improvement in the Debt Service Coverage Ratio (DSCR)

Q: Answer-An improvement in the Debt Service Coverage Ratio (DSCR) indicates:

The Debt Service Coverage Ratio DSCR measures a companys ability to service its debt obligations with its operating income. An improvement in the DSCR indicates that the company has a better capacity to repay its debts, reflecting stronger financial health.

indicates:

A A decrease in the company's profitability

B An increase in the company's liabilities

C A worsening of the company's cash flow

D A better ability to repay debts

E A decrease in the company's equity

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An improvement in the Debt Service Coverage Ratio (DSCR)

Solution