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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 MatchesGuaranteed 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. Coverage initiatedCoverage initiatedUsually refers to the fact that analysts begin following a particular security. This usually happens when there is enough trading in it to warrant attention by the investment community. 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. Overall market price coverageOverall market price coverageTotal 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. 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. Further SuggestionsCash flow coverage ratioInitiate coverage Coverage ratios Adequacy of coverage Coverage Preferred dividend coverage extended coverage |
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