Asset Coverage

Asset Coverage - Asset coverage is a measure of which a company's assets, net value, cover a company's debt obligations, plus/or preferred stocks. This value is similar information to what you would find on a company's profit and loss statement, although this is expressed in real dollar terms, and often express in percentages. In accounting, the profit and loss statement shows the owners or company's equity expressed in dollars, although it usually takes into account amortized long-term debts, as well.