What is the meaning of Debt service?

Debt service is the ratio of a loan payment amount to available cash flow earned during a specific period. Typically lenders insist that a company maintain a certain debt service ratio or else risk penalties such as having to pay off the loan immediately.

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APABarry Goldsmith. (2010). debt service. Retrieved September 20, 2026, from http://smartdefine.org/debt_service/definitions/1151558
ChicagoBarry Goldsmith. 2010. "debt service" http://smartdefine.org/debt_service/definitions/1151558 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, debt service, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/debt_service/definitions/1151558>.
MLABarry Goldsmith. "debt service" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/debt_service/definitions/1151558>