coverage ratio

coverage ratio definition - business

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.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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