15 January 2018

Fixed Charge Cover

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

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.

Related articles

You probably sort of know how index linked gilts, or “linkers,” work. The redemption value is linked to the change in the retail price index, or RPI, that takes place over the life of the gilt. 

Another word for duration could be the average life of a bond. Most bonds pay annual or semi-annual coupons and have a redemption date. So whilst a bond maturing in three years and with a £5 annual…

The most commonly used multiplier model is the price- to-earnings (P/E) multiple. Very simply, a company with a high P/E may be considered overvalued when measured relative to peers. There are many…