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Quick Ratio Covenant Sample Clause

Book Publication Date: Nov 2014
Description: Coverage tests are financial covenants that relate to a company's ability to service its debt out of income or cash flow. This sample clause describes a "quick ratio" of cash, cash equivalents, and receivables to current liabilities.
Type: Contract Clauses
PLI Item #: 129901
Practice Area: Banking and finance, Corporate finance

Keywords: "quick ratio"; cash; "cash equivalents"; covenant; receivables; "current liabilities"; "financial covenants"

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