COVERAGE OF FIXED CHARGES Definition

Bookmark and Share

COVERAGE OF FIXED CHARGES is computed by taking your net income, before taxes and fixed charges (debt repayment, long-term leases, preferred stock dividends etc.), and dividing by the amount of fixed charges. The resulting number shows your ability to meet your fixed obligations of all types i.e. the higher the number, the better.

Learn new Accounting Terms

INTERCOMPANY or INTERCORPORATE means occurring between companies.

PIECEMEAL OPINION is an expression of an opinion on an item in financial statements that is not permitted as part of a disclaimer or adverse opinion on the financial statements as a whole because it would tend to overshadow or contradict a disclaimer of opinion or an adverse opinion.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.