UK Accounting Glossary
The Asset Coverage Ratio measures the ability of a company to cover it’s debt obligations with it’s assets.
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.
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.
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This glossary post was last updated: 5th May 2019.