A measure of a firm's ability to meet its fixed-charge obligations: the ratio of (Earnings before ... debt service (annual principal and interest payments). Notice that lease payments are ...

The interest coverage ratio uses earnings because it is used to estimate if you can pay your interest costs. The fixed-assets- to long-term-liabilities ratio uses assets because it is used to ...

Fixed charges typically include lease payments ... Many loan agreements include TIE ratio covenants requiring borrowers to maintain minimum coverage levels, often between 1.5 and 3.0 depending ...

The interest coverage ratio indicates the number of times ... and a loan agreement that stipulates fixed cash payments. Let's say a real estate developer seeks a mortgage loan from a local bank.

The preferred dividend coverage ratio indicates a company's ability to meet its obligation to pay dividends to preferred ... similarity to bonds and other fixed-income investments.