We compute 'economic' debt service cover ratios or DSCR, including all cash at bank (including any debt service reserve account). This ensures consistent computations across firms and a DSCR that genuinely represent the hard default point (DSCR=1).  

Debt service cover ratios are computed thus:

DSCR_t = \frac{Cop_t + Cia_t + Cinv_t + Cbank + Cdd_t}{DS_t}


  • Cop_t is cash from operations
  • Cia_t is cash from investment activities
  • Cinv_tis cash from investments (e.g. funds kept in escrow for bond funded projects) 
  • Cdd_tis cash from equity and debt drawdowns 
  • Cbank_t is cash at bank 

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