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Coverage ratios |
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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.Coverage ratios Similar MatchesExtended coverageExtended coverageInsurance which extends the term of a warranty, typically covering repairs on appliances and cars, the premium usually being a one-off payment. 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. Overall market price coverageOverall market price coverageTotal 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. Preferred dividend coveragePreferred dividend coverageNet income after interest and taxes (before common stock dividends) divided by preferred stock dividends. Coverage initiatedCoverage initiatedUsually 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. Further SuggestionsDebt service coverageAdequacy of coverage Cash flow coverage ratio Coverage Guaranteed replacement cost coverage insurance Asset coverage test Initiate coverage |
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