Fixed Charge Coverage Calculator

The Fixed Charge Coverage measures how well the company can cover the interest on its debt AND its lease payments with its Operating Profit.

If Fixed Charge Coverage increases over time:

An increasing Fixed Charge Coverage usually indicates the company has been more able to cover the interest on its debt AND its lease payments with its Operating Profit.

If Fixed Charge Coverage decreases over time:

A decreasing Fixed Charge Coverage usually indicates the company has been less able to cover the interest on its debt AND its lease payments with its Operating Profit.

If Fixed Charge Coverage stays the same over time:

An unchanged Fixed Charge Coverage usually indicates the companys''s ability to cover the interest on its debt AND its lease payments with its Operating Profit has remained the same.