Reviewed by Khadija Khartit Fact checked by Vikki Velasquez Financial ratios can be used to assess a company's capital ...

The Times Interest Earned ratio, also known as the interest coverage ratio ... DSCR = Operating Cash Flow ÷ Total Debt Service Where Total Debt Service includes both interest and principal ...

A poor interest coverage ratio, such as below one, means the company's current earnings are insufficient to service its outstanding debt. The chances of a company being able to continue to meet ...

the ratio of (Earnings before interest, depreciation and amortization minus unfunded capital expenditures and distributions) divided by total debt service (annual principal and interest payments).