Fixed charge coverage


Fixed charge coverage
  The ratio of earnings available to pay so-called fixed charges to such fixed charges. Fixed charges include interest on funded debt, including leases, plus the related amortizations of debt discount, premium, and expense. Earnings available for fixed charges may be computed before or after deducting income taxes. Occasionally credits for the "allowance for funds used during construction" are excluded from the earnings figures. The precise procedures followed in calculating fixed charges or interest coverages vary widely.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.

Look at other dictionaries:

  • fixed charge coverage ratio — USA The ratio of EBITDA to interest expense and scheduled principal payments on debt for borrowed money. Fixed charges may also include rent payments, required dividends and capital expenditures. This financial ratio measures the company s… …   Law dictionary

  • Fixed-Charge Coverage Ratio — A ratio that indicates a firm s ability to satisfy fixed financing expenses, such as interest and leases. It is calculated as the following: For example, since leases are a fixed charge, the calculation determining a company s ability leases… …   Investment dictionary

  • Fixed-charge coverage ratio — A measure of a firm s ability to meet its fixed charge obligations: the ratio of (net earnings before taxes plus interest charges paid plus long term lease payments) to (interest charges paid plus long term lease payments). The New York Times… …   Financial and business terms

  • fixed-charge coverage ratio — A measure of a firm s ability to meet its fixed charge obligations: the ratio of (Earnings before interest, depreciation and amortization minus unfunded capital expenditures and distributions) divided by total debt service (annual principal and… …   Financial and business terms

  • fixed charge coverage ratio — A measure of a firm s ability to meet its fixed charge obligations: the ratio of (Earnings before interest, depreciation and amortization minus unfunded capital expenditures and distributions) divided by total debt service (annual principal and… …   Financial and business terms

  • fixed-charge–coverage ratio — See: interest cover …   Accounting dictionary

  • coverage — See: fixed charge coverage ratio * * * coverage cov‧er‧age [ˈkʌvrɪdʒ] noun [uncountable] 1. TELECOMMUNICATIONS the area served by a broadcaster or mobile phone company: • one 2 one now has nationwide coverage with its network …   Financial and business terms

  • Coverage ratios — Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed charge coverage ratio. The New York Times Financial Glossary …   Financial and business terms

  • coverage ratios — Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed charge coverage ratio. Bloomberg Financial Dictionary …   Financial and business terms

  • Fixed asset — Fixed assets, also known as a non current asset or as property, plant, and equipment (PP E), is a term used in accounting for assets and property which cannot easily be converted into cash. This can be compared with current assets such as cash or …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.