Formula
to calculate fixed coverage ratio:
Fixed
coverage = earnings before interest and taxes / fixed
charges before taxes.
Fixed
coverage ratio definition and explanation:
The fixed
coverage ratio
indicates the ability of a business to pay fixed charges
(fixed costs) when business activity falls.
The fixed coverage ratio is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The fixed coverage ratio is listed in our leverage
ratios.
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Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
calculate, define and explain.
The fixed coverage ratio
may be included in our
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