Cover ratio: Difference between revisions
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#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: | ||
#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 == | ||
Revision as of 14:33, 13 May 2016
An investor's measure of the safety of their future income flow from an investment.
The cover ratio is calculated as:
- The investment's internal cash flow - or its accounting equivalent flow - available to pay the investor's income DIVIDED BY:
- The income flow expected by, or contractually payable to, the investor.
