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Related to CADS: scads
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Cash Available for Debt Service
A ratio of a company's cash on hand to its debt service. A ratio of less than 1 indicates that the company is unable to service its debt while a ratio of 1 means that it can service its debt, but that doing so will result in no remaining cash on hand. Thus, shareholders and potential lenders prefer to have the cash available for debt service to be as high as possible.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved