Fixed Charge Coverage Ratio Calculator – Fixed Income Tools – Multi-Tools

Fixed Charge Coverage Ratio Calculator

Calculate and analyze the Fixed Charge Coverage Ratio (FCCR) to assess a company’s ability to meet all fixed payment obligations, including lease payments and preferred dividends.

Operating Income Details
Earnings Before Interest and Taxes
Annual operating lease payments
Fixed Charges Details
Annual interest payment obligations
Annual preferred stock dividend payments
Principal portion of capitalized lease payments
Tax Information
Corporate tax rate for tax shield calculations

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How to Use
  1. Enter EBIT and lease payment values
  2. Input interest expense and preferred dividends
  3. Add capitalized lease obligations if applicable
  4. Specify the tax rate
  5. Click Calculate to analyze FCCR

Interpretation:

  • FCCR > 2.0: Strong coverage
  • 1.5 < FCCR < 2.0: Adequate coverage
  • FCCR < 1.5: Weak coverage

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