What is cash-flow coverage ratio?
Cash Flow Before Debt Service divided by annual debt service. It differs from the standard classroom DSCR (NOI ÷ debt service) because it deducts capital costs and reserves first.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.