Cash Available for Debt Service
Ratio of cash assets to debt service (interest plus nearby principal). Used in evaluating the risk of a project or firm. The higher the ratio the less likely the firm or project will fail to meet its debt obligations.
Nearby TermsCash and equivalents Cash asset ratio Cash Available for Debt Service Cash balance pension plan Cash basis
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University