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).