CASH DEBT COVERAGE RATIO Definition

Bookmark and Share

CASH DEBT COVERAGE RATIO is the ratio of net cash provided by operating activities to average total liabilities, called the cash debt coverage ratio, is a cash-basis measure of solvency. This ratio indicates a company's ability to repay its liabilities from cash generated from operating activities without having to liquidate the assets used in operations.

Learn new Accounting Terms

CALL can be 1. process of redeeming a bond or preferred stock issue before its normal maturity. A security with a call provision typically is issued at an interest rate higher than one without a call provision. Investors look at yield-to-call rather than yield-to-maturity; 2. right to buy 100 shares of stock at a specified price within a specified period; or, 3. option to buy (call) an asset at a specified price within a specified period.

MERCHANT BANK is a specialized bank that offers investment services, corporate advice, trade and project finance, exchange rate dealing, etc to their clients worldwide. Sometimes also acts as an issuing bank for stocks and bonds, and can also advise companies involved in mergers.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.