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Asset coverage test |
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Asset coverage testA bond indenture restriction that permits additional borrowing if the ratio of assets to debt does not fall below a specified minimum.Asset coverage test Similar MatchesDebt service coverage ratioDebt service coverage ratioEarnings before interest and income taxes, divided by interest expense plus the quantity of principal repayments divided by one minus the tax rate. CoverageCoverageSee: Fixed-charge coverage Cash flow coverage ratioCash flow coverage ratioThe number of times that financial obligations (for interest, principal payments, preferred stock dividends, and rental payments) are covered by earnings before interest, taxes, rental payments, and depreciation. Coverage ratiosCoverage ratiosRatios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed-charge coverage ratio. Preferred dividend coveragePreferred dividend coverageNet income after interest and taxes (before common stock dividends) divided by preferred stock dividends. Further SuggestionsGuaranteed replacement cost coverage insuranceAdequacy of coverage Debt service coverage Coverage initiated Initiate coverage extended coverage Overall market price coverage |
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