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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 MatchesOverall 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. 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 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. Cash flow coverage ratioCash 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. CoverageCoverageSee: Fixed-charge coverage Further SuggestionsGuaranteed replacement cost coverage insuranceAsset coverage test Debt service coverage ratio extended coverage Adequacy of coverage Initiate coverage Preferred dividend coverage |
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