✖Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses.ⓘ Earnings Before Interest and Taxes [EBIT]			+10% -10%
✖Fixed Charges Before Taxes are any type of expense that recurs on a regular basis, regardless of the volume of business.ⓘ Fixed Charges Before Taxes [FCBT]			+10% -10%
✖Interest is the charge for the privilege of borrowing money, typically expressed as an annual percentage rate.ⓘ Interest [I]			+10% -10%

✖Fixed Charge Coverage Ratio measures a firm's ability to cover its fixed charges, such as debt payments, interest expense, and equipment lease expense.ⓘ Fixed Charge Coverage Ratio [FCCR]

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Formula

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Fixed Charge Coverage Ratio

Formula

`"FCCR" = ("EBIT"+"FCBT")/("FCBT"+"I")`

Example

`"2.499942"=("450000"+"300000")/("300000"+"7")`

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Fixed Charge Coverage Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest)
FCCR = (EBIT+FCBT)/(FCBT+I)
This formula uses 4 Variables

Variables Used

Fixed Charge Coverage Ratio - Fixed Charge Coverage Ratio measures a firm's ability to cover its fixed charges, such as debt payments, interest expense, and equipment lease expense.
Earnings Before Interest and Taxes - Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses.
Fixed Charges Before Taxes - Fixed Charges Before Taxes are any type of expense that recurs on a regular basis, regardless of the volume of business.
Interest - Interest is the charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

STEP 1: Convert Input(s) to Base Unit

Earnings Before Interest and Taxes: 450000 --> No Conversion Required
Fixed Charges Before Taxes: 300000 --> No Conversion Required
Interest: 7 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

FCCR = (EBIT+FCBT)/(FCBT+I) --> (450000+300000)/(300000+7)

Evaluating ... ...

FCCR = 2.49994166802775

STEP 3: Convert Result to Output's Unit

2.49994166802775 --> No Conversion Required

FINAL ANSWER

2.49994166802775 ≈ 2.499942 <-- Fixed Charge Coverage Ratio

(Calculation completed in 00.004 seconds)

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< 2 Coverage Ratios Calculators

Fixed Charge Coverage Ratio

Go Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest)

Interest Coverage Ratio

Go Interest Coverage Ratio = Earnings Before Interest and Taxes/Interest Expense

< 22 Important Formulas of Financial Ratios Calculators

Fixed Charge Coverage Ratio

Go Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest)

Free Cash Flow to Firm

Go Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures

Economic Value Added

Go Economic Value Added = Net Operating Profit After Tax-Weighted Average Cost of Capital*Total Invested Capital

Average Collection Period

Go Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length)

Revenue Growth Rate

Go Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100

Sales Growth Rate

Go Sales Growth Rate = ((Current Period Sales-Previous Period Sales)/Previous Period Sales)*100

Business Quick Ratio

Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities

Quick Ratio

Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities

Interest Coverage Ratio

Go Interest Coverage Ratio = Earnings Before Interest and Taxes/Interest Expense

Debt to Equity Ratio

Go Debt to Equity (D/E) = Total Liabilities/Total Shareholders' Equity*100

Market Capitalization

Go Market Capitalization = Current Share Price*Total Shares Outstanding

Receivables Turnover Ratio

Go Receivables Turnover Ratio = Net Sales/Average Accounts Receivables

Free Cash Flow

Go Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures

Fixed Asset Turnover Ratio

Go Fixed Asset Turnover Ratio = Net Sales/Average Net Fixed Assets

Equity Multiplier

Go Equity Multiplier = Total Assets/Total Shareholders' Equity

Inventory Turnover Ratio

Go Inventory Turnover Ratio = Cost of Goods Sold/Inventory

Sales to Receivables Ratio

Go Sales to Receivables Ratio = Net Sales/Net Receivables

Debt to Assets Ratio

Go Debt to Assets Ratio = Total Liabilities/Total Assets

Business Current Ratio

Go Current Ratio = Current Assets/Current Liabilities

Current Ratio

Go Current Ratio = Current Assets/Current Liabilities

Cash Flow to Sales

Go Cash Flow to Sales = Operating Cash Flow/Sales

Total Asset Turnover

Go Total Asset Turnover = Sales/Total Assets

Fixed Charge Coverage Ratio Formula

Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest)
FCCR = (EBIT+FCBT)/(FCBT+I)

What is Fixed Charge Coverage Ratio?

The Fixed Charge Coverage Ratio measures a company’s ability to meet fixed charges from its earnings before interest and taxes (EBIT). Examples of fixed charges include insurance premiums and lease and loan payments because the same amount is due each month, no matter how much revenue the company earns.
Essentially, the FCCR shows how many times over your business can satisfy its predictable financial responsibilities. An FCCR of 1 means you have just enough earnings before interest and taxes to meet them. An FCCR of 2 shows you could pay them all two times over.

How to Calculate Fixed Charge Coverage Ratio?

Fixed Charge Coverage Ratio calculator uses Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest) to calculate the Fixed Charge Coverage Ratio, The Fixed Charge Coverage Ratio (FCCR) compares the company’s ability to generate sufficient cash flow to meet its fixed charge obligations, such as the required principal and interest payments on debt. Fixed Charge Coverage Ratio is denoted by FCCR symbol.

How to calculate Fixed Charge Coverage Ratio using this online calculator? To use this online calculator for Fixed Charge Coverage Ratio, enter Earnings Before Interest and Taxes (EBIT), Fixed Charges Before Taxes (FCBT) & Interest (I) and hit the calculate button. Here is how the Fixed Charge Coverage Ratio calculation can be explained with given input values -> 2.499942 = (450000+300000)/(300000+7).

FAQ

What is Fixed Charge Coverage Ratio?

The Fixed Charge Coverage Ratio (FCCR) compares the company’s ability to generate sufficient cash flow to meet its fixed charge obligations, such as the required principal and interest payments on debt and is represented as FCCR = (EBIT+FCBT)/(FCBT+I) or Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest). Earnings Before Interest and Taxes is a measure of a firm's profit that includes all expenses except interest and income tax expenses, Fixed Charges Before Taxes are any type of expense that recurs on a regular basis, regardless of the volume of business & Interest is the charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

How to calculate Fixed Charge Coverage Ratio?

The Fixed Charge Coverage Ratio (FCCR) compares the company’s ability to generate sufficient cash flow to meet its fixed charge obligations, such as the required principal and interest payments on debt is calculated using Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest). To calculate Fixed Charge Coverage Ratio, you need Earnings Before Interest and Taxes (EBIT), Fixed Charges Before Taxes (FCBT) & Interest (I). With our tool, you need to enter the respective value for Earnings Before Interest and Taxes, Fixed Charges Before Taxes & Interest and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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