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.
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.
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 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 coveragePreferred dividend coverage
Net income after interest and taxes (before common stock dividends) divided by preferred stock dividends.
Overall market price coverageOverall 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 SuggestionsDebt service coverage ratio
Debt service coverage
Adequacy of coverage
Guaranteed replacement cost coverage insurance
Cash flow coverage ratio