coverage ratio

Coverage Ratio

Any ratio measuring one's ability to pay a certain expense. There are various kinds of coverage ratio. For example, one may take a ratio of a company's monthly cash flow to its monthly debt service. Generally speaking, a coverage ratio at or above 1 indicates that a company can pay the stated expense, while a ratio below 1 indicates the opposite.

coverage ratio

A measure of a corporation's ability to meet a certain type of expense. In general, a high coverage ratio indicates a better ability to meet the expense in question. See also dividend coverage, fixed-charge coverage, interest coverage, preferred dividend coverage.
References in periodicals archive ?
Thus, bid coverage ratio improved to 2.4905 from 0.9614 in the previous week.
The company said, "The full quarter's contribution to Adjusted EBITDA from both Golar Igloo and Golar Freeze contributed to an anticipated improvement in both 2Q distribution coverage ratio and the Adjusted Net Debt to Annualized Adjusted EBITDA ratio.
On the other hand, the report said, the coverage ratio remained flattish at 80 percent against 83 percent in 2018.
Cyprus NPL coverage ratio was however slightly above the EU average with 45.9 per cent compared with 45.1 per cent.
The Reserve Bank of India (RBI) has issued draft guidelines on liquidity management for the Non-Banking Finance Companies (NBFCS) and proposed a liquidity coverage ratio for large NBFCS covering all deposit-taking NBFCS and non-deposit taking NBFCS with an asset size of 5,000 crore and above.
Summary: Asset quality continued to improve with coverage ratio at 155 per cent
since the contracting authority is aware that a coverage ratio of 100% is difficult to obtain, the contracting authority wishes to enter into a cooperation with the supplier.
Accordingly, the asset coverage ratio requirement applicable to the company will be 150% as of 2 February 2019, while the annual base management fee will be 1.0% on any amount of assets attributable to leverage, decreasing its asset coverage ratio below 200% with immediate effect.
--GAAP earnings-based interest coverage ratio 13 times or above.
Although the resulting effective coverage ratio remained strong in global terms, the less than full LLR coverage is not a normal characteristic for an 'A+' rated bank.
Board of directors of Ares Capital Corporation (NASDAQ: ARCC) has approved the application to the company of the 150% minimum asset coverage ratio set forth in Section 61(a)(2) of the Investment company Act of 1940, as amended by the Small Business Credit Availability Act (SBCAA), the company said.
RAM Ratings said the REIT's strong operating cashflow of above RM400 million annually, together with superior coverage ratios as demonstrated by its fixed charge coverage ratio and funds from operations financing coverage ratio of 7.49 times and 0.38 times, respectively, were among the highest compared to peers.