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Debt Service Ratio

Measures the burden of scheduled debt service relative to resources.

Formula

Debt service ratio = Debt-service payments / Income or revenue ×100

Variables: Principal and interest payments; relevant income base

What it means

Measures the burden of scheduled debt service relative to resources.

Example

Debt service 90 against revenue 900 gives 10%.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.