In this fourth posting about the financial ratios that help businesses understand how they can do more, we cover a Debt Service Ratio and what it means. A Debt Service ratio is one of the five ratios contained in our FREE Business Health Check that we provide to SME businesses that are looking for opportunities to improve.
A Debt Service Ratio tells a bank or lender (as well as a business owner) how much cash or income is being used to cover interest payments due on liabilities of the business. The formula Continue reading “How healthy is your business? Part 4 [VIDEO]”