Asset coverage test

The financial definition for Asset coverage test:

A bond indenture restriction that permits additional borrowing if the ratio of assets to debt does not fall below a specified minimum.

Similar Matches

Adequacy of coverage

Adequacy of coverage
A test that measures the extent to which the value of an asset is protected from potential loss either through insurance or hedging.

Cash flow coverage ratio

Cash flow coverage ratio
The 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.


See: Fixed-charge coverage

Further Suggestions

Coverage initiated
Coverage ratios
Debt service coverage
Debt service coverage ratio
Guaranteed replacement cost coverage insurance
Initiate coverage
Overall market price coverage

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Asset coverage test
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