| 释义 |
times fixed charges Fixed-Charge Coverage RatioA measure of a company's ability to pay its fixed expenses, such as rent and interest, on debt without resorting to more debt. A ratio over 1 indicates that the company is able to pay its fixed charges, while a ratio below one indicates the opposite. The fixed charge coverage ratio is calculated thus:
Fixed-charge coverage ratio = (EBIT + fixed charges before tax) / (fixed charged before tax + interest)times fixed charges See fixed-charge coverage. |