Fixed-Charge Coverage Ratio

Fixed-Charge Coverage Ratio

Measures the degree to which a firm can fulfill its fixed-charge obligations. Expressed as a ratio. Compares (net earnings prior to tax adjustments plus interest charges paid and long-term payments towards leases) with ( long-term payments towards leases plus interest charges paid).

Related posts:

1. Interest Coverage Ratio
2. Debt-Service Coverage Ratio
3. Fixed Asset Turnover Ratio
4. Cash Flow Coverage Ratio
5. Fixed Debenture