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Fixed Charge Coverage Ratio: Calculation and Interpretation

Updated on October 3, 2022 · By Ahmad Nasrudin Tag: Capital Structure, Financial Ratio, Interest expense, Lease, Leverage, Solvency Ratio

Fixed Charge Coverage Ratio Calculation and Interpretation

What's it: The fixed charge coverage ratio is a financial ratio to measure how well a company can cover interest and lease payments. Both represent fixed costs, which the company has to pay regardless of whether the company generates

Tag: Capital Structure, Financial Ratio, Interest expense, Lease, Leverage, Solvency Ratio

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