Related to Debt service:Debt Service Ratio,annual debt service ser·vice (sûr′vĭs) n. 1. a.Work that is done for others as an occupation or business:has done service for us as a consultant. b.The performance of work or duties for a superior or as a servant:found the butler's...
debt service noun :the amount of interest and principal payments due annually on long-term debt Last Updated: 23 Feb 2025 - Updated example sentences Love words? Need even more definitions? Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!
The meaning of SERVICE is the occupation or function of serving. How to use service in a sentence.
1. Ininvestment real estate, the ratio of annualnet operating incomeon a piece of investmentpropertyto its annualdebt service. Banks use the DSCR to help determine whether to make or refinance loans for investment property. A DSCR equal to or greater than 1 indicates that the debtor is able...
debt service (Dictionary) Author: Harold Averkamp, CPA, MBA Definition The total of interest and principal payments required to be paid on loans payable. Related Q&A What is the difference between liability and debt? What is the debt ratio?
Annual Service Charge for any period means the maximum amount which is payable during such period for interest on, and the amortization during such period of any original issue discount of, Debt of the Company and its Subsidiaries and the amount of dividends which are payable during such period...
Debt serviceis the act of making interest andprincipalpayments ondebt. How Does Debt Service Work? For example, let's say Company XYZ borrows $10,000,000 and the payments work out to $14,000 per month. Making this $14,000 payment is called servicing thedebt. ...
The annual debt service payment was calculated by multiplying the sum of the respective loan’sMonthly Debt Serviceby twelve. The monthly payment amount due on the first principal and interest installment date, as stated in Section 3 of the Promissory Note; or For full term interest only loans...
Debt service coverage ratio (DSCR) helps investors determine if a company can cover its debt obligation. It’s calculated by dividing net operating income by debt service.
Over time, the debt ceiling has been raised whenever the United States has approached the limit. By hitting the limit and failing to pay interest payments to bondholders, the United States would be in default, lowering its credit rating and increasing the cost of its debt. ...