Fixed-charge Coverage Ratio
Fixed-charge Coverage Ratio
Definition: 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).
Definition: 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).