Cover ratio: Difference between revisions

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The cover ratio is calculated as:
The cover ratio is calculated as:
1. The investment's internal cash flow - or its accounting equivalent flow - available to pay the investor's income DIVIDED BY:
#The investment's internal cash flow - or its accounting equivalent flow - available to pay the investor's income DIVIDED BY:
2. The income flow expected by, or contractually payable to, the investor.
#The income flow expected by, or contractually payable to, the investor.
 


== See also ==
== See also ==
* [[Annual Debt Service Cover Ratio]]
* [[Breach of covenant]]
* [[Debt service ratio]]
* [[Debt service ratio]]
* [[Dividend cover]]
* [[Dividend cover]]
* [[Interest cover]]
* [[Interest cover]]
* [[Uncovered]]
* [[Uncovered]]


[[Category:Corporate_finance]]
[[Category:Long_term_funding]]
[[Category:Treasury_operations_infrastructure]]

Latest revision as of 23:15, 23 January 2021

An investor's measure of the safety of their future income flow from an investment.

The cover ratio is calculated as:

  1. The investment's internal cash flow - or its accounting equivalent flow - available to pay the investor's income DIVIDED BY:
  2. The income flow expected by, or contractually payable to, the investor.


See also