Coverage ratios

 

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Coverage ratios

Ratios 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.



Coverage ratios

Similar Matches

Extended coverage

Extended coverage

Insurance which extends the term of a warranty, typically covering repairs on appliances and cars, the premium usually being a one-off payment.


Initiate coverage

Initiate coverage

(1) Firm is now followed by analysts at a particular securities house; (2) Indication to cover short position by purchasing the underlying stock (this cancels out the short position).


Asset coverage test

Asset coverage test

A bond indenture restriction that permits additional borrowing if the ratio of assets to debt does not fall below a specified minimum.


Preferred dividend coverage

Preferred dividend coverage

Net income after interest and taxes (before common stock dividends) divided by preferred stock dividends.


Overall market price coverage

Overall market price coverage

Total assets less intangibles divided by the total of the market value of the security issue and the book value of liabilities and issues having a prior claim. This is used to determine how much of the market value of a certain class of securities would be covered in liquidation.


Further Suggestions

Debt service coverage ratio
Coverage initiated
Debt service coverage
Adequacy of coverage
Guaranteed replacement cost coverage insurance
Cash flow coverage ratio
Coverage


 
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