Cover ratio: Difference between revisions
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== See also == | == See also == | ||
* [[Annual Debt Service Cover Ratio]] | * [[Annual Debt Service Cover Ratio]] | ||
* [[Breach of covenant]] | |||
* [[Debt service ratio]] | * [[Debt service ratio]] | ||
* [[Dividend cover]] | * [[Dividend cover]] | ||
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:
- 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.
