Cover ratio

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

• Annual Debt Service Cover Ratio
• Debt service ratio
• Dividend cover
• Interest cover
• Uncovered