Cover ratio: Difference between revisions
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Revision as of 14:19, 23 October 2012
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
