Fixed-charge coverage ratio formula
Description of the Fixed-charge coverage ratio formula
Formula for the calculation of a company's fixed-charge coverage ratio.
Formula
\[ \text{Fixed charge coverage ratio} =\frac{\text{EBIT + Lease expense }}{\text{Interest}+\text{Lease expense}} \ \]
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