TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

ASSET COVERAGE [1 record]

Record 1 2010-07-09

English

Subject field(s)
  • Financial and Budgetary Management
  • Stock Exchange
  • Investment
  • Banking
CONT

Some provinces, e.g., Ontario, require that this ratio be disclosed in prospectuses. Assets valued well in excess of a company's debt are normally required to generate the earnings necessary to meet interest requirements and repay indebtedness. At the same time, asset coverage shows the amount of assets (at book values) backing the debt securities. However, at best, asset values should be treated with extreme caution as the realizable value of assets in liquidation could be substantially less than their book values when the company is a going concern.

French

Domaine(s)
  • Gestion budgétaire et financière
  • Bourse
  • Investissements et placements
  • Banque
DEF

Ratio indicateur de la capacité de l'emprunteur de rembourser ses dettes avec les actifs qu'il possède.

OBS

Ce ratio correspond au quotient obtenu en divisant le total des actifs corporels diminué des passifs à court terme par le total des passifs à long terme de l'entité à la même date.

Spanish

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