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Debt service coverage |
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Debt service coverageThe ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt.Debt service coverage Similar MatchesExtended coverageExtended coverageInsurance which extends the term of a warranty, typically covering repairs on appliances and cars, the premium usually being a one-off payment. Asset coverage testAsset coverage testA bond indenture restriction that permits additional borrowing if the ratio of assets to debt does not fall below a specified minimum. 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. 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. Adequacy of coverageAdequacy of coverageA test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging. Further SuggestionsInitiate coverageCoverage Coverage ratios Overall market price coverage Guaranteed replacement cost coverage insurance Preferred dividend coverage Coverage initiated |
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