Generally, the higher the ratio, the greater the "cushion" between current obligations and a firm's ability to meet them. Debt An amount owed for funds borrowed. The debt may be owed to an organization's own reserves, individuals, banks, or other institutions. Generally, the debt invitation discover personal loan secured by a note, bond, mortgage, or other instrument that states repayment and interest provisions. The note, in turn, may be secured by a lien against property or other assets.
Debt Service Amount of payment due regularly to meet a debt agreement; usually a monthly, quarterly or annual obligation.
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