What does asset coverage ratio mean?

This ratio measures the company's ability to cover its senior debt obligations with its total assets, providing a buffer for creditors. It is a key indicator of financial leverage and regulatory compliance for investment companies. A higher ratio indicates a stronger financial position and greater capacity to absorb potential asset devaluations.

Capital Southwest CSWC Asset coverage ratio

Asset coverage ratio at other companies

Prospect CapitalPSEC

180.1%-0.9pp

Bain Capital Specialty FinanceBCSF

150%—

MidCap Financial Investment CorporationMFIC

163%-9.0pp

Blackstone Secured Lending FundBXSL

175.5%-8.7pp

Blue Owl CapitalOBDC

183%+8.0pp

Golub CapitalGBDC

178.8%-4.0pp

Other financials

Income statement

See full

Net income$27.5M+56.5%

EPS (diluted)$0.44+25.7%

Balance sheet

See full

Cash & equivalents$29.4M-34.4%

Total debt$1.1B+18.2%

Total equity$1.0B+14.4%

Total assets$2.2B+15.7%

Cash flow

See full

Operating cash flow-$59.1M-0.7%

CapEx$49.0K-87.6%

Free cash flow-$59.2M-0.1%

Valuation

See full

Market cap$1.43B+24.4%

Enterprise value$2.53B+22.8%

P/E12.6×-3.6×

Returns & leverage

See full

Return on equity11.9%+3.3pp

Debt / equity1.1×0.0×

Where this comes from

Reported directly by Capital Southwest in its filing.

Tagged under the XBRL concept cswc:InvestmentCompanySeniorSecurityIndebtednessAssetCoverageRatioMinimumThreshold.

The official record: Capital Southwest’s 10-K, filed May 19, 2026, on SEC EDGAR. View the filing →

Questions, answered.

What does asset coverage ratio mean?: This ratio measures the company's ability to cover its senior debt obligations with its total assets, providing a buffer for creditors. It is a key indicator of financial leverage and regulatory compliance for investment companies. A higher ratio indicates a stronger financial position and greater capacity to absorb potential asset devaluations.