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Cash flow coverage ratio |
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Cash 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.Cash flow coverage ratio 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. Preferred dividend coveragePreferred dividend coverageNet income after interest and taxes (before common stock dividends) divided by preferred stock dividends. Debt service coverageDebt service coverageThe ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt. 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. Adequacy of coverageAdequacy of coverageA test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging. Further SuggestionsInitiate coverageCoverage Guaranteed replacement cost coverage insurance Asset coverage test Overall market price coverage Coverage initiated extended coverage |
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