Project finance / Rebuilt
Debt service coverage
Compare cash available with interest and principal due in the same period.
Your assumptions
01 / 02Your scenario
02 / 02Debt service coverage
Initial example. Change assumptions to explore a scenario.
Debt service—
Cash after debt service—
Cash at threshold—
Cash-flow comparison (€m)
Result breakdown (M€)
| Component | Amount |
|---|
The method, not a black box
Use the same period and unit for all inputs. CFADS is cash available after relevant outgoings and before distributions to shareholders.
DSCR = CFADS / (intérêts + principal). Flux requis au seuil = service de la dette × seuil.
Reference: World Bank — DSCR and project financing ↗
What the result does not tell you
The 1.30× threshold is an editable example, not a universal requirement. A ratio alone does not establish financeability. With zero debt service the ratio is undefined.
Starting values are examples. No result guarantees a return, credit decision or tax treatment.