Dividend Coverage Calculator helps calculating the Dividend Coverage ratio.
The Dividend Coverage Ratio, also known as dividend cover, is a financial metric that measures the number of times that a company can pay dividends to its shareholders.
Liquidity ratios attempt to measure a company's ability to pay off its short-term debt obligations.
The Dividend Coverage equals to the ratio between the Net Income and Dividend.
For example, If The Net Income Income equals to 100,000 dollars and the Dividend equlas 20,000 dollars, the Dividend Coverage Ratio equals to 5, which means that the firm can pay the dividend 5 times, out of the Net Income