The financial definition for Debt service coverage:
The ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt.
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.
Asset coverage test
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.
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.