times fixed charges

Fixed-Charge Coverage Ratio

A 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

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2 times fixed charges, which is sufficient for the current rating.
2 times fixed charges before preferred dividends and between 3.
6 times fixed charges over the period from 1987 to 1991, and earnings are estimated to have been 6.