coverage ratio

简明释义

盈利与利息比率

英英释义

例句

1.The coverage ratio 覆盖率比率 helps assess the risk associated with a company's debt.

该coverage ratio 覆盖率比率 有助于评估与公司债务相关的风险。

2.A high coverage ratio 覆盖率比率 suggests that the firm is in a strong financial position.

较高的coverage ratio 覆盖率比率 表明公司处于强劲的财务状况。

3.A low coverage ratio 覆盖率比率 may indicate potential financial trouble for the business.

较低的coverage ratio 覆盖率比率 可能表明企业面临潜在的财务困境。

4.The company's coverage ratio 覆盖率比率 indicates its ability to meet its financial obligations.

公司的coverage ratio 覆盖率比率 表明其满足财务义务的能力。

5.Investors often look for a coverage ratio 覆盖率比率 above 1.5 before investing in a company.

投资者通常在投资公司之前会寻找超过1.5的coverage ratio 覆盖率比率。

作文

The concept of coverage ratio is vital in the fields of finance and insurance, as it serves as a measure of the ability of an entity to meet its financial obligations. In simpler terms, the coverage ratio indicates how well a company can cover its debt obligations with its earnings or cash flow. This metric is particularly important for investors and creditors, as it provides insights into the financial health and stability of a business. To understand the significance of the coverage ratio, we must first look at its components. The most common types of coverage ratios include the interest coverage ratio, which assesses a company's ability to pay interest on its outstanding debt, and the debt service coverage ratio, which evaluates the company’s ability to service all of its debt obligations. These ratios are calculated by dividing the relevant earnings or cash flow by the total debt obligations. For instance, if a company generates $1 million in earnings before interest and taxes (EBIT) and has $200,000 in interest expenses, the interest coverage ratio would be 5. This means that the company earns five times what it needs to pay in interest, indicating a strong capacity to manage its debt. Conversely, a low coverage ratio could signal potential financial distress, raising red flags for investors and stakeholders. In the realm of insurance, the coverage ratio can refer to the proportion of claims that can be paid out by the insurer relative to its reserves. A high coverage ratio in this context suggests that the insurance company is well-positioned to handle claims, while a low ratio might indicate that the company could struggle to meet its obligations in the event of a significant loss. Moreover, understanding the coverage ratio helps businesses make informed decisions regarding their capital structure. Companies with higher coverage ratios are typically seen as lower risk by lenders, which can lead to better borrowing terms and lower interest rates. On the other hand, companies with lower ratios may face higher costs of capital, making it more challenging to finance growth or operations. It is also essential to consider industry benchmarks when evaluating a company's coverage ratio. Different industries have varying standards for acceptable ratios, and what may be considered a healthy ratio in one sector could be viewed as inadequate in another. Therefore, comparing a company's coverage ratio to its peers can provide a clearer picture of its financial standing. In conclusion, the coverage ratio is a crucial indicator of financial health, providing valuable insights for investors, creditors, and management alike. By assessing a company's ability to meet its financial obligations, stakeholders can make informed decisions that impact their investments and strategies. As such, a thorough understanding of the coverage ratio and its implications is essential for anyone involved in financial analysis or decision-making. Whether in finance or insurance, monitoring this ratio can help ensure that entities remain solvent and capable of fulfilling their commitments, ultimately contributing to long-term success and stability.

“覆盖比率”这一概念在金融和保险领域至关重要，因为它作为衡量一个实体满足其财务义务能力的指标。简单来说，“覆盖比率”指的是公司用其收益或现金流来覆盖债务义务的能力。这一指标对投资者和债权人尤为重要，因为它提供了关于企业财务健康和稳定性的见解。要理解“覆盖比率”的重要性，我们必须首先了解其组成部分。最常见的覆盖比率包括利息覆盖比率，它评估公司支付未偿债务利息的能力，以及债务服务覆盖比率，它评估公司服务所有债务义务的能力。这些比率是通过将相关的收益或现金流除以总债务义务来计算的。例如，如果一家公司在利息和税前收益（EBIT）中产生100万美元的收益，并且有20万美元的利息支出，则利息覆盖比率将为5。这意味着公司赚取的收入是其需要支付的利息的五倍，表明其管理债务的能力很强。相反，低“覆盖比率”可能会发出潜在财务困境的警告，给投资者和利益相关者带来风险。在保险领域，“覆盖比率”可以指保险公司相对于其储备能够支付的索赔比例。在这种情况下，高“覆盖比率”表明保险公司能够很好地处理索赔，而低比率可能表明该公司在发生重大损失时可能会难以履行其义务。此外，理解“覆盖比率”有助于企业做出有关资本结构的明智决策。具有更高覆盖比率的公司通常被贷款人视为较低风险，这可能导致更好的借贷条件和更低的利率。另一方面，覆盖比率较低的公司可能面临更高的资本成本，从而使融资增长或运营变得更加困难。在评估公司的“覆盖比率”时，还必须考虑行业基准。不同的行业对可接受比率有不同的标准，而在一个行业中被视为健康的比率，在另一个行业中可能被视为不足。因此，将公司的“覆盖比率”与同行进行比较可以更清楚地了解其财务状况。总之，“覆盖比率”是财务健康的重要指标，为投资者、债权人和管理层提供了宝贵的见解。通过评估公司满足其财务义务的能力，利益相关者可以做出影响其投资和战略的明智决策。因此，全面理解“覆盖比率”及其影响对于任何参与财务分析或决策的人来说都是必不可少的。无论是在金融还是保险领域，监测这一比率都可以帮助确保实体保持偿付能力并能够履行其承诺，最终有助于长期成功和稳定。