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Times Fixed Charges

    0.03 sec.
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.
We have the capacity to finance our current growth plans while maintaining coverage ratios at, or above, three times fixed charges.
 
 
 
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