Fixed Charge Cover

= Earnings before interest and tax + Fixed Charges/Fixed Charges

Understanding Finance

Fixed charge cover takes the interest cover ratio a step further to include fixed charges such as lease payments as well as interest expense. A company with a large store estate for example, which it might fund through operating leases rather than debt, should have this sometimes large expense taken into account.

Understanding Finance

Helping clients understand what we do is key to building relationships. To explain some of the industry jargon that creeps into our world, we’ve pulled together a section of our site to help.


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