debt coverage ratio UK US noun [C] (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.
Financial and business terms. 2012.