Asset Coverage

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Asset Coverage

The extent to which a company can maintain operations at its level of debt. One of the most common ways to measure asset coverage is the asset coverage ratio, which divides the value of tangible assets less current liabilities by the company's total debt outstanding. These liabilities may include preferred dividends and rent. See also: Cash flow coverage ratio, Debt service coverage ratio.
References in periodicals archive ?
Banks were generally compliant with the required asset and liquid asset cover ratios of 100 percent and 30 percent, respectively,' it added.
The combination of this strong management team, attractive cashflows and good asset cover make this a very attractive deal for us and one that is well suited to our funding package.
The Committee also proposes that the management boards should include representatives of beneficiaries and suggests that the provisions of Article 16 concerning asset cover be extended to cross-border funds.
While other factors (such as interest cover, fixed asset cover and cash flow) may be relevant, the Revenue has principally focused on the debt to equity ratio.
Recoveries vary for debtors of those other individual ENE affiliates which have been placed under Chapter 11 protection, reflecting the bias towards individual asset cover analysis within the Plan, though aggregate recoveries on the debts of those entities in Chapter 11 looks to average roughly 20% should the Plan's estimates prove accurate.
Tenders are invited for Hiring of Services for Up-Keeping of Installations at ONGC,Tripura Asset covers all four GCSs (ADB, Baramura, Konaban, upcoming Sonamura), Dukli Metering Station, Colony Gas metering station, Kunjaban and Sundalbari manifolds, Nimbutali junction point, Monarchak and OTPC terminals and other valves stations for a period of three years.
The asset covers more than 43,000 acres of land and includes three projects - Bare Rock Project, Nomans Lake Project and the Hoffmans Hill Project.