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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 MatchesCoverageCoverageSee: Fixed-charge coverage Guaranteed replacement cost coverage insuranceGuaranteed replacement cost coverage insuranceA policy that covers the full cost of replacing damaged property without any allowances or deductions, e.g., depreciation. 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). 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. Preferred dividend coveragePreferred dividend coverageNet income after interest and taxes (before common stock dividends) divided by preferred stock dividends. Further SuggestionsAdequacy of coverageOverall market price coverage Cash flow coverage ratio Coverage initiated extended coverage Asset coverage test Debt service coverage |
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