Coverage ratios


 

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Coverage ratios

Ratios 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 Matches

Initiate coverage

Initiate 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).


Preferred dividend coverage

Preferred dividend coverage

Net income after interest and taxes (before common stock dividends) divided by preferred stock dividends.


Coverage

Coverage

See: Fixed-charge coverage


Guaranteed replacement cost coverage insurance

Guaranteed replacement cost coverage insurance

A policy that covers the full cost of replacing damaged property without any allowances or deductions, e.g., depreciation.


Debt service coverage

Debt service coverage

The ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt.


Further Suggestions

Cash flow coverage ratio
Adequacy of coverage
extended coverage
Asset coverage test
Overall market price coverage
Coverage initiated
Debt service coverage ratio


 
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