Debt service

Debt service is the sum of a company's regular payment obligations based on all credit, loan and leasing contracts. This includes principal repayment, interest and the amount of other fees.

Debt stock refers to long-term debts of more than one year. A company's debt can arise in many different ways. You can pick different ones purposes, different with term and conditions credit, respectively a loan. You can knit lease agreement, but you can release it bond among other things. These debts must be repaid under the conditions specified in the contracts. 

For a specific period (a month or, for example, a for the business year) relevant debt service is the amount of regular installments (and, for example, lease payments) to be paid on the basis of all credit, loan or financial leasing contracts. This includes principal repayment, a interest rates, and other fees as well. 

In the event that the company participates in a credit or loan transaction as a co-debtor, the amount of monthly installments that falls to the company and is divided equally among the co-debtors is also part of the debt service.  

Whether our company will be able to fulfill its debt service obligations according to the contract is debt service ratio can be determined using.