COVERAGE OF FIXED CHARGES Definition

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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.

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PER DIEM is a. one every day (e.g., save 10 man-hours per diem) or, b. payment of daily expenses and/or fees of an employee or an agent.

OFF-FRONT PAYMENT see UP-FRONT PAYMENT.

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