Home » Accounting Terms Dictionary » Tax Accounting Terms Dictionary » Pre-tax Debt Service Coverage

Definition Of Pre-tax Debt Service Coverage:

Indicator of a firm's ability to cover its interest income and short-term debt obligations before payment of income tax.
Formula: (Pre-tax income + depreciation + amortization + interest expense - interest income) ÷ annual debt service. See also debt service coverage, and post tax debt service coverage.

Other Definition Of Accounting Terms:

Pre-tax Income
Pre-tax Return On Sales
Preauthorized Payment
Precautionary Balance
Predetermined Overhead Rate
Preferred Dividend

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