Meaning Distribution coverage ratio
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Distribution coverage ratio


the “cushion” a partnership has in paying its cash distribution. The higher the ratio is, the greater the safety of the distribution. Is calculated either as (1) available cash flow (before taking out GP payments) divided by total cash distributed or (2) distributable cash flow divided by distributions to LPs, usually calculated on a per unit basis [..]
Source: mlpguy.com (offline)




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