What Are the Advantages of the Current Cash Debt Coverage Ratio?

The debt coverage rate is also called the debt repayment rate, which refers to the ratio of the sum of the project's net cash flow and the repayable amount of the year to the total repayable amount of the year. [1]

Debt coverage

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The debt coverage rate is also called the debt repayment rate, which refers to the ratio of the sum of the project's net cash flow and the repayable amount of the year to the total repayable amount of the year. [1]
It refers to the ratio of the cash flow (excluding the principal and interest payment component) available for repayment of debt to the debt repayment obligation of the current period.
Debt coverage ratio DCRt = current debt cash flow / current debt repayment obligations

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