CoverageSee: Fixed-charge coverage
Preferred dividend coveragePreferred dividend coverage
Net income after interest and taxes (before common stock dividends) divided by preferred stock dividends.
Debt service coverage ratioDebt service coverage ratio
Earnings before interest and income taxes, divided by interest expense plus the quantity of principal repayments divided by one minus the tax rate.
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.
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 coverageDebt 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 SuggestionsAsset coverage test
Cash flow coverage ratio
Guaranteed replacement cost coverage insurance
Adequacy of coverage