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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Debt Service Ratio

Definition:

This ratio compares cash flow (money coming in) to the total interest payments owed on debts. A company could be bringing in tons of cash, but if it's leveraged up to its eyeballs, it won't have a lot of wiggle room.