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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 MatchesCoverage 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. Debt 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. 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. Extended coverageExtended coverageInsurance which extends the term of a warranty, typically covering repairs on appliances and cars, the premium usually being a one-off payment. Preferred dividend coveragePreferred dividend coverageNet income after interest and taxes (before common stock dividends) divided by preferred stock dividends. Further SuggestionsAdequacy of coverageOverall market price coverage Initiate coverage Coverage initiated Coverage Guaranteed replacement cost coverage insurance Debt service coverage |
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