COVERAGE RATIO Definition

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COVERAGE RATIO is a measure of a corporations ability to meet a certain type of expense. In general, a high coverage ratio indicates a better ability to meet the expense in question. Examples: dividend coverage, fixed-charge coverage, interest coverage, preferred dividend coverage.

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NET REVENUE is GROSS REVENUE less discounts, allowances, sales returns, freight out, etc.

ICA is International Congress of Accountants.

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