Cover ratio

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Revision as of 12:04, 5 August 2013 by imported>Doug Williamson (Spacing)
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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