Asset Coverage

Business, Legal & Accounting Glossary

Definition: Asset Coverage


Asset Coverage


Full Definition of Asset Coverage


The extent to which a company’s net assets cover its debt obligations and/or preferred stock. This ratio is used to calculate a company’s ability to cover all liabilities with existing assets to determine a company’s financial health.

( (Book Value Assets – Intangible Assets) – (Current Liabilities – Short Term Debt Obligations) ) / Total Debt Outstanding


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Asset Coverage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 08, 2021 https://payrollheaven.com/define/asset-coverage/.
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Asset Coverage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/asset-coverage/ (accessed: December 08, 2021).
American Psychological Association (APA):
Asset Coverage. PayrollHeaven.com. Retrieved December 08, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/asset-coverage/

Definition Sources


Definitions for Asset Coverage 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: 20th November, 2021 | 0 Views.