HomeDefinitionsCompareDebt Coverage ratiosThe financial definition for Coverage ratios:Ratios 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. Similar MatchesAdequacy 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. 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. Further SuggestionsCoverageCoverage initiated Debt service coverage Debt service coverage ratio Guaranteed replacement cost coverage insurance Initiate coverage Overall market price coverage Click to compare definitions of Coverage ratios Click to view definitions beginning co |