Coverage Ratio

A type of accounting ratio that helps measure a company's ability to meet its obligations satisfactorily.

Investopedia Says:
A coverage ratio encompasses many different types of financial ratios. Typically, these kinds of ratios involve a comparison of assets and liabilities. The better the assets "cover" the liabilities, the better off the company is.

Related Links:
If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios. Ratio Analysis Tutorial

Financial ratio measuring a bank's ability to absorb potential losses from nonperforming loans. The ratio is calculated by dividing the ending balance of the Loan Loss Reserves balance by total nonperforming loans.