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Cobertura de intereses (IN THIS CONTEXT)

English translation: interest coverage ratio

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Spanish term or phrase:cobertura de intereses
English translation:interest coverage ratio
Entered by: María Eugenia Wachtendorff
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16:08 Oct 28, 2006
Spanish to English translations [PRO]
Bus/Financial - Accounting
Spanish term or phrase: Cobertura de intereses (IN THIS CONTEXT)
This refers to a key financial indicator that a company must maintain. It occurs in a contract for the constrution of an industrial plant, and the contractor is required to ensure that this ratio is above a certain level:

CONTEXT: "... Mantener las siguientes relaciones financieras durante la vigencia del Contrato:

(A) ***Cobertura de intereses*** mayor que 2,5 veces. La cobertura de intereses se calculará, en cada oportunidad que el Proveedor entregue a XXXX sus estados financieros trimestrales, como la razón entre los flujos de operación (resultado de explotación más depreciación y amortización de intangibles) y los gastos financieros del período respectivo.

(B) Endeudamiento menor que 70%. ..."


What is this ratio called in English accounting terminology?
Stuart Allsop
Chile
Local time: 23:48
interest coverage ratio
Explanation:
I always check my intuitive approaches against Orellana, and this is what I found ;)
Selected response from:

María Eugenia Wachtendorff
Chile
Local time: 23:48
Grading comment
Selected automatically based on peer agreement.
4 KudoZ points were awarded for this answer

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Summary of answers provided
4 +5interest coverage ratio
María Eugenia Wachtendorff


  

Answers


18 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +5
interest coverage ratio


Explanation:
I always check my intuitive approaches against Orellana, and this is what I found ;)

María Eugenia Wachtendorff
Chile
Local time: 23:48
Works in field
Native speaker of: Native in SpanishSpanish
PRO pts in category: 120
Grading comment
Selected automatically based on peer agreement.

Peer comments on this answer (and responses from the answerer)
agree  xxxDCypher
28 mins
  -> Thank you, Paul

agree  bigedsenior: ...good intuition!
1 hr
  -> Thank you, Bigedsenior ;)

agree  garci
2 hrs
  -> Gracias, Garci

agree  marybro: absolutely...usually referred to as ICR, occasionally "interest coverage" as in this link http://www.investorwords.com/5903/interest_coverage_ratio.ht...
5 hrs
  -> Thank you, Mary :)

agree  MikeGarcia: Votre intuition, Madame, brille comme votre sourire...
23 hrs
  -> Merci bien, Monsieur Nonnino :))
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