Fixed-charge coverage ratio formula

Tags: corporate finance financial analysis metric

Description of the Fixed-charge coverage ratio formula

Formula for the calculation of a company's fixed-charge coverage ratio.

Formula

Fixed charge coverage ratio = \frac{EBIT + Lease expense}{Interest + Lease expense}

Additional information related to this formula

Related financial formulas

Cash flow interest coverage ratio • Debt-to-equity ratio • Interest coverage ratio • Total debt-to-assets ratio