what is a good dscr 
a good dscr depends on the company s industry its competitors and its growth a smaller company that s just beginning to generate cash flow might face lower dscr expectations compared with a mature company that s already well established a dscr above 1 25 is often considered strong as a general rule however ratios below 1 00 could indicate that the company is facing financial difficulties the bottom linethe dscr is a commonly used financial ratio that compares a company s operating income to the company s debt payments the ratio can be used to assess whether a company has sufficient income to meet its principal and interest obligations the dscr is commonly used by lenders or external parties to mitigate risk in loan terms 