Debt service ratio

In economics and government finance, debt service ratio is the ratio of debt service payments (principal + interest) of a country to that country’s export earnings. A country's international finances are healthier when this ratio is low. The ratio is between 0 and 20% for most countries.

In contrast to the debt service coverage ratio

Debt service coverage ratio

The debt service coverage ratio , also known as "debt coverage ratio," is the ratio of cash available for debt servicing to interest, principal and lease payments. It is a popular benchmark used in the measurement of an entity's ability to produce enough cash to cover its debt payments...

, which is calculated as income divided by debt, this ratio is inverse and is calculated as debt service divided by country's income from international trade, i.e. export.