What is the Debt Service Coverage Ratio (DSCR)? Definition: The debt service coverage ratio (DSCR) is a metric that assesses the ability of the company to pay off its current debts relative to net income. The financial ratio measures if the company can generate adequate profit to meet its debt obligations. Usually, lenders and banks
What is the Debt Ratio? Definition: Debt ratio is a financial measure that helps in determining whether the company has loans or not and if it does how the total liabilities compare to its assets. In simple terms, this solvency ratio shows the ability of the company to pay off debt using its assets. The
What is the Debt to Asset Ratio? Definition: Debt to asset ratio is a financial leverage ratio that shows the total assets of a company financed through creditors relative to those funded by investors. Analysts use this measure to compare the leverage of one company to another provided they operate within a similar sector. Leverage
What is the Debt to Capital Ratio? Definition: Debt to capital ratio is a financial ratio used in determining the financial leverage of a company through a comparison of its debt and total capital. This measure determines the percentage of debt the company is using to finance its operations relative to its total capital. Usually,
What is the Debt To Income Ratio? Definition: Debt to income measures the ability of an individual to meet their debt obligations. This personal finance metric compares an individual’s gross monthly income to their debt payments per month. Usually, gross income is the amount one earns before deductions and taxes. Debt to Income Ratio (DTI)
What is the Debt To Equity Ratio? Definition: The debt to equity ratio is a measure that is used to determine how much debt the company uses relative to its equity to fund its operations. It is a liquidity ratio that indicates the percentage of the company’s financing derived from investors as well as creditors.
What is the DuPont Analysis? Definition: DuPont analysis also referred to as the DuPont model or DuPont identity is a financial measure advanced by DuPont Corporation used in analyzing the ability of the company to enhance its return on equity. In essence, the financial model helps in breaking down the ROE ratio to demonstrate how
What is the Dividend Payout Ratio? Definition: Dividend payout ratio is a ratio that determines the net income percentage that the company will distribute among shareholders at the end of the year as dividends. In essence, it is a measure that indicates the percentage of the company’s profits that it will keep for funding operations
What is the Dividend Yield Ratio? Definition: Dividend yield is one of the measures investors who are seeking dividend income consider to decide on the company to invest in. The dividend yield ratio determines how much cash dividends each shareholder should receive relative to the current market value of each share. The ratio helps shareholders
What is Earnings Per Share? Definition: Earnings per share (EPS) are the amount of profit of a publicly-traded company per share of its outstanding stock. Essentially it is how much each outstanding share will be allocated if the company were to distribute its profits equally to its outstanding shares annually. This measure is used as