The fixed charge coverage ratio is a more comprehensive version of the times interest earned ratio.

Name: The fixed charge coverage ratio is a more comprehensive version of the times interest earned ratio.
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Question

Quizplus · Accepted Answer

The fixed charge coverage ratio not only includes interest expenses but also other fixed expenses like lease payments and insurance premiums, making it a more comprehensive measure of a company's ability to cover its fixed expenses.

The Fixed Charge Coverage Ratio Is a More Comprehensive Version