Coverage 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 coverage
A test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging.
Initiate coverageInitiate 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).
Extended coverageExtended coverage
Insurance 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 coverage
Net income after interest and taxes (before common stock dividends) divided by preferred stock dividends.
Coverage initiatedCoverage initiated
Usually refers to the fact that analysts begin following a particular security. This usually happens when there is enough trading in it to warrant attention by the investment community.
Debt service coverage ratio
Overall market price coverage
Debt service coverage
Guaranteed replacement cost coverage insurance
Cash flow coverage ratio
Asset coverage test