A ratio below 1 indicates that operating cash is not enough to cover debt payments. In project finance and structured loans, a minimum DSCR is usually included as a covenant.
Source: Kredi ve proje finansmanı uygulaması
Related terms
Financial covenantsObligations in loan agreements requiring the borrower to maintain certain financial ratios (such as net debt/EBITDA or debt service coverage).Project financeFinancing a large investment, usually through a special purpose project company, so that repayment relies primarily on the project's own cash flows.Free cash flowThe cash an entity generates from operations after funding capital expenditure and working capital needs, available for distribution to providers of finance.BetaA coefficient measuring the sensitivity of a share's return to changes in the market return, that is, its systematic risk.Break-even pointThe sales volume or amount at which total revenue equals total cost and the business makes neither profit nor loss.Capital asset pricing model (CAPM)A model that calculates the cost of equity from the risk-free rate, beta and the market risk premium.
Last updated: November 8, 2026 · This definition is for general information only.