Which of the following factors is NOT considered when evaluating debt service capacity?

When evaluating debt service capacity, analysts typically focus on a company's ability to meet its debt obligations through its cash flows, which means examining factors that directly relate to its financial performance and predictability. Revenue stability, operational costs, and overall growth projections are all critical elements in this assessment.

Revenue stability is crucial because it indicates how reliable a company's income streams are over time, which directly impacts its ability to generate enough funds to service its debts. Operational costs are equally significant since they affect net income and cash flow available for debt repayment; high operational costs might strain a company's resources, making it less capable of servicing debt obligations.

Overall growth projections are also included in the assessment as they provide insights into the future earning potential of the company. If a company is projected to grow consistently, this typically suggests that it may improve its cash flow in the future, enhancing its ability to service its debt.

In contrast, market share, while often an indicator of competitive strength and can influence revenue, is not a direct measure of debt service capacity. It does not inherently reflect the current or future cash flows that a company can generate to repay its debts. Thus, it is not considered a critical factor in evaluating debt service capacity.