A coverage ratio is a measure of a company's ability to service its debt and meet its financial obligations.
 | | Coverage Ratio | | A coverage ratio is a measure of a company's ability to service its debt and meet its financial obligations. The higher the coverage ratio, the easier it should be to make interest payments on its debt or pay dividends. The trend of coverage ratios over time is also studied by analysts and investors to ascertain the change in a company's financial position. | | Breaking it Down: | | Coverage ratios can be used to help identify companies in a potentially troubled... | | Read More » | | Related to "Coverage Ratio" | | | | Understanding Leverage Ratios | | Large amounts of debt can cause businesses to become less competitive and, in some cases, lead to default. To lower their risk, investors use a variety of leverage ratios - including the debt, debt-to-equity and interest coverage ratios - to identify firms with unhealthy debt levels. | | Read More » | | | EBITDA-To-Interest Coverage Ratio | | The EBITDA-to-interest coverage ratio is a ratio that is used to assess a company's financial durability by examining whether it is at least profitable enough to pay off its interest expenses. | | Read More » | | | Liquidity Ratios | | Liquidity ratios are a class of financial metrics used to determine a debtor's ability to pay off current debt obligations without raising external capital | | Read More » | | | Coordination Of Coverage | | Coordination of Coverage is a process undertaken by insurers to eliminate gaps in an policyholder's individual or business' insurance coverage. | | Read More » | | | Combined Ratio | | Combined ratio is a measure of profitability used by an insurance companu to indicate how well it is performing in its daily operations. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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