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Coverage ratios

• Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed charge coverage ratio.

• Ratios that measure the firm's ability to pay certain fixed financing charges. Includes times interest earned ratio and the fixed-charge coverage ratio.

 
 

Follow this link for all the terms related to ratio.

 
 Embedded terms in definition
 Cash flow
Cash
Debt
Earnings
Fixed charge coverage ratio
Interest coverage ratio
Interest coverage
Interest
Lease
Times interest earned ratio
 
 Related Terms
 

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