Cover ratio: Difference between revisions

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* [[Interest cover]]
* [[Interest cover]]
* [[Uncovered]]
* [[Uncovered]]
[[Category:Corporate_finance]]
[[Category:Long_term_funding]]
[[Category:Treasury_operations_infrastructure]]
[[Category:Long_term_funding]]

Revision as of 22:42, 13 November 2013

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