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.
Advertisement
Related Tools
How to Use
- Enter EBIT and lease payment values
- Input interest expense and preferred dividends
- Add capitalized lease obligations if applicable
- Specify the tax rate
- Click Calculate to analyze FCCR
Interpretation:
- FCCR > 2.0: Strong coverage
- 1.5 < FCCR < 2.0: Adequate coverage
- FCCR < 1.5: Weak coverage