Define: Asset Cover

Business, Legal & Accounting Glossary

Definition: Asset Cover


Quick Summary of Asset Cover


The Asset Coverage Ratio measures the ability of a company to cover it’s debt obligations with it’s assets.



What is the dictionary definition of Asset Cover?

Dictionary Definition


A ratio that provides a measure of the solvency of a company; it consists of it’s net assets divided by it’s debt.

Companies with high asset cover are considered more solvent.


Advertisement



Full Definition of Asset Cover


The asset coverage ratio is a risk measurement that calculates a company’s ability to repay it’s debt obligations by selling it’s assets.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/asset-cover/
Modern Language Association (MLA):
Asset Cover. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 09, 2020 https://payrollheaven.com/define/asset-cover/.
Chicago Manual of Style (CMS):
Asset Cover. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/asset-cover/ (accessed: April 09, 2020).
American Psychological Association (APA):
Asset Cover. PayrollHeaven.com. Retrieved April 09, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/asset-cover/

Definition Sources


Definitions for Asset Cover are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th May, 2019