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