We have noted the error and will address it soon. Send us a feedback with your email address if you want to be notified.
Modal Header
Some text in the modal.
Fixed Charge Coverage Ratio:
..
Background Information
What does Fixed Charge Coverage Ratio mean?
The Fixed Charge Coverage Ratio is a financial ratio that finds out how well a business's earnings cover its fixed charges. This ratio is an expanded version of the ‘times interest earned ratio’.
An income statement shows $300,000 income before interest and taxes and interest expense of $30,000. The current lease payment is $2,000 a month or $24,000 a year. On applying the formula, the Fixed Charge Coverage Ratio equals 6 (six).
Comments 0