Fixed Charge Coverage Ratio Calculator
About Fixed Charge Coverage Ratio Calculator
The Fixed Charge Coverage Ratio Calculator is used to calculate the fixed charge coverage ratio.
Fixed Charge Coverage Ratio Definition
In business, a fixed charge coverage ratio is a ratio that indicates a company’s ability to satisfy fixed costs, such as interest and leases.
Formula
The fixed charge coverage ratio calculation formula is as follows:
Fixed charge coverage ratio = (EBIT + Lease payments) / (Interest expense + Lease payments)
