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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. 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). Asset coverage testAsset coverage testA bond indenture restriction that permits additional borrowing if the ratio of assets to debt does not fall below a specified minimum. Preferred dividend coveragePreferred dividend coverageNet income after interest and taxes (before common stock dividends) divided by preferred stock dividends. 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. Further SuggestionsDebt service coverage ratioCoverage initiated Debt service coverage Adequacy of coverage Guaranteed replacement cost coverage insurance Cash flow coverage ratio Coverage |
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