debt coverage ratio
noun [ C ]
ukus(abbreviation DCR); (also debt-service coverage ratio); (also debt service ratio) FINANCE
a measurement used to decide whether a person, company, or country can afford to pay back a loan, calculated by dividing the income that is available by the total amount of payments owed each year for the loan:
A debt coverage ratio of less than 1 indicates that there is not enough cash flow to pay the property's expenses and mortgage payments.