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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 MatchesCoverage 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. 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). 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. CoverageCoverageSee: Fixed-charge coverage Debt service coverageDebt service coverageThe ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt. Further SuggestionsGuaranteed replacement cost coverage insuranceAsset coverage test Adequacy of coverage Debt service coverage ratio extended coverage Overall market price coverage Preferred dividend coverage |
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