Debt service ratio

In economics and government finance, debt service ratio is the ratio of debt service payments (principal + interest) of a country to that country’s export earnings.^[1] A country's international finances are healthier when this ratio is low. The ratio is between 0 and 20% for most countries.

In contrast to the debt service coverage ratio, which is calculated as income divided by debt, this ratio is inverse and is calculated as debt service divided by country's income from international trade, i.e. export.

References

1. ^ Debt service ratio, OECD

This article related to macroeconomics is a stub. You can help Wikipedia by expanding it.v · Categories: Macroeconomics stubs Macroeconomics Financial ratios Wikimedia Foundation. 2010. Игры ⚽ Нужен реферат? Moussa Kanfideni John Porter Hatch Look at other dictionaries: debt service ratio — ➔ ratio * * *    The proportion of a country s export earnings needed to cover interest and principal repayments of its foreign debts, particularly those owed by the public sector. A level of 20 percent is normally considered an acceptable… …   Financial and business terms debt service ratio — DSR The proportion of annual export earnings needed to service a country s external debts, including both interest payments and repayment of principal. The DSR is an important statistic, indicating the severity of a country s indebtedness. The… …   Big dictionary of business and management Total Debt Service Ratio - TDS — A debt service measure that financial lenders use as a rule of thumb to give a preliminary assessment of whether a potential borrower is already in too much debt. More specifically, this ratio shows the proportion of gross income that is already… …   Investment dictionary Gross Debt Service Ratio - GDS — A debt service measure that financial lenders use as a rule of thumb to give a preliminary assessment about whether a potential borrower is already in too much debt. Receiving a ratio of less than 30% means that the potential borrower has an… …   Investment dictionary 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… …   Financial and business terms debt-service ratio — /det sɜ:vɪs ˌreɪʃiəυ/ noun the debts of a company shown as a percentage of its equity …   Dictionary of banking and finance Debt service — may refer to: Interest payable on debt, especially on government debt Debt service ratio Debt service coverage ratio External debt Developing countries debt Credit analysis Bureau of the Public Debt …   Wikipedia Debt service coverage ratio — The debt service coverage ratio (DSCR), also known as debt coverage ratio, is the ratio of cash available for debt servicing to interest, principal and lease payments. It is a popular benchmark used in the measurement of an entity s (person or… …   Wikipedia debt service coverage — ( DSC) The margin by which all of a borrower s or bond issuer s required principal payments (not just those for the loan under consideration or just those for loans to one bank) are exceeded by the sum of the firm s cash flow plus all of the… …   Financial and business terms Debt-Service Coverage Ratio - DSCR — In corporate finance, it is the amount of cash flow available to meet annual interest and principal payments on debt, including sinking fund payments. In government finance, it is the amount of export earnings needed to meet annual interest and… …   Investment dictionary 18+ © Academic, 2000-2024 Contact us: Technical Support, Advertising Dictionaries export, created on PHP, Joomla, Drupal, WordPress, MODx. Mark and share Search through all dictionaries Translate… Search Internet Share the article and excerpts Direct link … Do a right-click on the link above and select “Copy Link”