For example, since leases are a fixed charge, the calculation determining a company's ability leases would be (EBIT + Lease Expenses) / (Lease Expenses + Interest).
Investment dictionary. Academic. 2012.
fixed charge coverage ratio — USA The ratio of EBITDA to interest expense and scheduled principal payments on debt for borrowed money. Fixed charges may also include rent payments, required dividends and capital expenditures. This financial ratio measures the company s… … Law dictionary
Fixed-charge coverage ratio — A measure of a firm s ability to meet its fixed charge obligations: the ratio of (net earnings before taxes plus interest charges paid plus long term lease payments) to (interest charges paid plus long term lease payments). The New York Times… … Financial and business terms
fixed-charge coverage ratio — A measure of a firm s ability to meet its fixed charge obligations: the ratio of (Earnings before interest, depreciation and amortization minus unfunded capital expenditures and distributions) divided by total debt service (annual principal and… … Financial and business terms
fixed charge coverage ratio — A measure of a firm s ability to meet its fixed charge obligations: the ratio of (Earnings before interest, depreciation and amortization minus unfunded capital expenditures and distributions) divided by total debt service (annual principal and… … Financial and business terms
fixed-charge–coverage ratio — See: interest cover … Accounting dictionary
Fixed charge coverage — The ratio of earnings available to pay so called fixed charges to such fixed charges. Fixed charges include interest on funded debt, including leases, plus the related amortizations of debt discount, premium, and expense. Earnings available for … Energy terms
coverage — See: fixed charge coverage ratio * * * coverage cov‧er‧age [ˈkʌvrɪdʒ] noun [uncountable] 1. TELECOMMUNICATIONS the area served by a broadcaster or mobile phone company: • one 2 one now has nationwide coverage with its network … Financial and business terms
Coverage ratios — Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed charge coverage ratio. The New York Times Financial Glossary … Financial and business terms
coverage ratios — Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed charge coverage ratio. Bloomberg Financial Dictionary … Financial and business terms
Financial ratio — Corporate finance … Wikipedia
