The Fixed-Charge Coverage Ratio (FCCR) is a financial metric that reflects a company's ability to cover its fixed charges, such as interest and lease expenses, with its earnings before interest and taxes (EBIT). It's a key metric used by lenders and investors to assess a company's financial health and risk level.
The Fixed-Charge Coverage Ratio measures a firm's ability to meet its fixed financial obligations, including interest payments on long-term debt and other contractual commitments, relative to its earnings before interest and taxes.
Interest cover, also known as the fixed-charge-coverage ratio, is a financial metric used to assess a company’s ability to meet its interest obligations from its earnings before interest and tax (EBIT).
Times Fixed Charge is a measure of a company's ability to meet its fixed financial obligations, commonly evaluated through the Fixed-Charge Coverage Ratio.
