Coverage Ratio
An accounting ratio that helps measure a company's ability to meet its obligations satisfactorily. Investopedia Says:
A coverage ratio encompasses many different types of financial ratios. Typically, these kinds of ratios involve a comparison of assets and liabilities. The better the assets "cover" the liabilities, the better off the company is. Related Terms:
Asset Coverage Ratio
Cash Available For Debt Service - CADS
Debt Service Ratio
Fixed Coverage Ratio
Gearing Ratio
Times Earned Interest |