How to calculate the fixed asset coverage ratio?

Open in App

Solution

The asset coverage ratio can be calculated by:

Asset coverage ratio =((Assets – Intangible Assets) – (Current Liabilities – Short-term Debt)) / Total Debt

Also see:

Difference Between Assets and Liabilities

What Are Non Current Assets?

Suggest Corrections

Similar questions

Q. Total Assets ₹22,00,000; Fixed Assets ₹10,00,000; Capital Employed ₹20,00,000. There were no Long-term Investments.
Calculate Current Ratio.

Q. Capital Employed ₹10,00,000; Fixed Assets ₹7,00,000; Current Liablities ₹1,00,000. There are no Long-term Investments. Calculate Current Ratio.

Q. From the following information, calculate Interest Coverage Ratio: Profit after Tax ₹1,70,000; Tax ₹30,000; Interest on Long-term Funds ₹50,000.

Q. Which of the following are solvency ratios?
a. Debt equity ratio
b. Total fixed assets to debt ratio
c. Debt ratio
d. Interest coverage ratio

This ratio primarily indicates the rate of external funds in financing the assets and the extent of coverage of their debts by the assets. This ratio is ____.

Join BYJU'S Learning Program

How to calculate the fixed asset coverage ratio?

The asset coverage ratio can be calculated by: Asset coverage ratio =((Assets – Intangible Assets) – (Current Liabilities – Short-term Debt)) / Total Debt Also see: Difference Between Assets and Liabilities What Are Non Current Assets?

The asset coverage ratio can be calculated by:

Asset coverage ratio =((Assets – Intangible Assets) – (Current Liabilities – Short-term Debt)) / Total Debt

Also see:

Difference Between Assets and Liabilities

What Are Non Current Assets?