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

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
Modern Language Association (MLA):
Asset Coverage. Payroll & Accounting Heaven Ltd.
December 08, 2021
Chicago Manual of Style (CMS):
Asset Coverage. Payroll & Accounting Heaven Ltd. (accessed: December 08, 2021).
American Psychological Association (APA):
Asset Coverage. Retrieved December 08, 2021
, from website:

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.