Cover ratio: Difference between revisions
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imported>Doug Williamson m (Spacing) |
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The cover ratio is calculated as: | 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. | |||
== See also == | == See also == | ||
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* [[Interest cover]] | * [[Interest cover]] | ||
* [[Uncovered]] | * [[Uncovered]] | ||
Revision as of 12:04, 5 August 2013
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.
