Fixed Charge Coverage Ratio definition: Copy, customize, and use instantly
Introduction
The term "Fixed Charge Coverage Ratio" (FCCR) refers to a financial metric used to assess a company's ability to cover its fixed charges, such as lease payments, loan obligations, and other recurring financial commitments, using its earnings. It is a crucial ratio for lenders, creditors, and investors to evaluate the financial stability and liquidity of a business.
Below are various examples of how "Fixed Charge Coverage Ratio" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Fixed Charge Coverage Ratio" in loan agreements
This definition ties "Fixed Charge Coverage Ratio" to debt servicing.
"Fixed Charge Coverage Ratio" means the ratio of a company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) to its total fixed financial obligations, as calculated under the terms of the loan agreement.
Definition of "Fixed Charge Coverage Ratio" in lease agreements
This definition connects "Fixed Charge Coverage Ratio" to rent commitments.
"Fixed Charge Coverage Ratio" refers to the ratio of a company’s available cash flow to its fixed charges, including lease payments, as defined in the lease agreement.
Definition of "Fixed Charge Coverage Ratio" in bond covenants
This definition links "Fixed Charge Coverage Ratio" to investor protections.
"Fixed Charge Coverage Ratio" includes the ratio of a company’s net operating income to its fixed financial obligations, required to remain above a specified threshold under the bond covenant.
Definition of "Fixed Charge Coverage Ratio" in financial reporting policies
This definition applies "Fixed Charge Coverage Ratio" to corporate disclosures.
"Fixed Charge Coverage Ratio" refers to a financial metric that measures a company’s ability to meet its fixed charges using its operating income, as disclosed in its financial statements.
Definition of "Fixed Charge Coverage Ratio" in credit agreements
This definition ties "Fixed Charge Coverage Ratio" to lending conditions.
"Fixed Charge Coverage Ratio" refers to the ratio of a borrower’s adjusted EBITDA to its fixed charges, including interest payments, principal repayments, and lease obligations, as required under the credit agreement.
Definition of "Fixed Charge Coverage Ratio" in debt restructuring agreements
This definition connects "Fixed Charge Coverage Ratio" to repayment capacity.
"Fixed Charge Coverage Ratio" means the ratio of a company’s net cash flow to its fixed financial obligations, used to assess its capacity to meet restructured debt payments.
Definition of "Fixed Charge Coverage Ratio" in investment evaluation
This definition links "Fixed Charge Coverage Ratio" to risk assessment.
"Fixed Charge Coverage Ratio" includes a financial metric used by investors to evaluate a company’s ability to generate sufficient earnings to cover its fixed costs and maintain operational stability.
Definition of "Fixed Charge Coverage Ratio" in lease renewal agreements
This definition ties "Fixed Charge Coverage Ratio" to tenant performance.
"Fixed Charge Coverage Ratio" refers to the ratio of a tenant’s net income to its fixed financial commitments, such as rent and insurance, as a condition for lease renewal.
Definition of "Fixed Charge Coverage Ratio" in corporate performance metrics
This definition connects "Fixed Charge Coverage Ratio" to financial health.
"Fixed Charge Coverage Ratio" means the ratio of a company’s earnings available for fixed charges to its total fixed obligations, indicating its financial health and operational resilience.
Definition of "Fixed Charge Coverage Ratio" in securitization agreements
This definition links "Fixed Charge Coverage Ratio" to asset-backed securities.
"Fixed Charge Coverage Ratio" refers to a financial metric that measures the issuer’s ability to meet fixed charge obligations from cash flows generated by the securitized assets.
Definition of "Fixed Charge Coverage Ratio" in franchise agreements
This definition ties "Fixed Charge Coverage Ratio" to franchisee viability.
"Fixed Charge Coverage Ratio" includes the ratio of a franchisee’s earnings before fixed charges to its total fixed obligations, used to assess its financial viability under the franchise agreement.
Definition of "Fixed Charge Coverage Ratio" in partnership agreements
This definition connects "Fixed Charge Coverage Ratio" to partner obligations.
"Fixed Charge Coverage Ratio" means the ratio of a partnership’s distributable earnings to its fixed financial commitments, as determined under the terms of the partnership agreement.
Definition of "Fixed Charge Coverage Ratio" in construction contracts
This definition links "Fixed Charge Coverage Ratio" to project financing.
"Fixed Charge Coverage Ratio" refers to the ratio of a contractor’s cash flow to its fixed obligations, such as equipment leases and loan payments, as a measure of its financial stability during the project.
Definition of "Fixed Charge Coverage Ratio" in vendor agreements
This definition ties "Fixed Charge Coverage Ratio" to supplier evaluation.
"Fixed Charge Coverage Ratio" means the ratio of a vendor’s operating income to its fixed charges, used to assess its financial capacity to fulfill long-term supply obligations.
Definition of "Fixed Charge Coverage Ratio" in acquisition financing
This definition connects "Fixed Charge Coverage Ratio" to deal underwriting.
"Fixed Charge Coverage Ratio" refers to a financial metric used by lenders to evaluate the acquiring company’s ability to service fixed obligations post-acquisition.
Definition of "Fixed Charge Coverage Ratio" in retail lease agreements
This definition links "Fixed Charge Coverage Ratio" to tenant screening.
"Fixed Charge Coverage Ratio" includes the ratio of a retailer’s net operating income to its fixed costs, such as rent and utilities, used to evaluate tenant eligibility.
Definition of "Fixed Charge Coverage Ratio" in private equity agreements
This definition ties "Fixed Charge Coverage Ratio" to portfolio performance.
"Fixed Charge Coverage Ratio" refers to the ratio of a portfolio company’s EBITDA to its fixed financial obligations, used by private equity firms to monitor financial performance.
Definition of "Fixed Charge Coverage Ratio" in mortgage agreements
This definition connects "Fixed Charge Coverage Ratio" to borrower capacity.
"Fixed Charge Coverage Ratio" means the ratio of a borrower’s cash flow to its fixed mortgage-related obligations, including principal, interest, taxes, and insurance.
Definition of "Fixed Charge Coverage Ratio" in real estate investment trusts (REITs)
This definition links "Fixed Charge Coverage Ratio" to operational stability.
"Fixed Charge Coverage Ratio" refers to the ratio of a REIT’s operating income to its fixed charges, such as debt service and lease payments, as a measure of its financial health.
Definition of "Fixed Charge Coverage Ratio" in project finance agreements
This definition ties "Fixed Charge Coverage Ratio" to cash flow analysis.
"Fixed Charge Coverage Ratio" means the ratio of a project’s net cash flow to its fixed financial obligations, ensuring sufficient liquidity to meet repayment terms.
Definition of "Fixed Charge Coverage Ratio" in shareholder agreements
This definition connects "Fixed Charge Coverage Ratio" to dividend capacity.
"Fixed Charge Coverage Ratio" refers to the ratio of a company’s free cash flow to its fixed costs, ensuring adequate resources for shareholder distributions and operational commitments.
Definition of "Fixed Charge Coverage Ratio" in airport concession agreements
This definition links "Fixed Charge Coverage Ratio" to tenant financial reviews.
"Fixed Charge Coverage Ratio" includes the ratio of an airport concessionaire’s net operating income to its fixed obligations, as part of periodic financial evaluations by the airport authority.
Definition of "Fixed Charge Coverage Ratio" in distressed asset sales
This definition ties "Fixed Charge Coverage Ratio" to buyer evaluation.
"Fixed Charge Coverage Ratio" means the ratio of a prospective buyer’s earnings to its fixed financial obligations, ensuring its capacity to manage the distressed asset post-sale.
Definition of "Fixed Charge Coverage Ratio" in lender covenants
This definition connects "Fixed Charge Coverage Ratio" to borrower conditions.
"Fixed Charge Coverage Ratio" refers to a covenant requiring borrowers to maintain a specified ratio of earnings to fixed charges to ensure compliance with loan terms.
Definition of "Fixed Charge Coverage Ratio" in hotel management agreements
This definition ties "Fixed Charge Coverage Ratio" to operational performance.
"Fixed Charge Coverage Ratio" refers to the ratio of a hotel’s net operating income to its fixed obligations, including lease payments and debt service, used to evaluate financial stability.
Definition of "Fixed Charge Coverage Ratio" in logistics contracts
This definition connects "Fixed Charge Coverage Ratio" to fleet financing.
"Fixed Charge Coverage Ratio" means the ratio of a logistics company’s EBITDA to its fixed costs, such as vehicle leases and facility rent, to assess operational sustainability.
Definition of "Fixed Charge Coverage Ratio" in manufacturing supply agreements
This definition links "Fixed Charge Coverage Ratio" to supplier viability.
"Fixed Charge Coverage Ratio" includes the ratio of a manufacturer’s available cash flow to its fixed obligations, ensuring its ability to meet supply chain commitments.
Definition of "Fixed Charge Coverage Ratio" in energy infrastructure agreements
This definition ties "Fixed Charge Coverage Ratio" to capital-intensive projects.
"Fixed Charge Coverage Ratio" refers to the ratio of a utility or energy project’s cash flow to its fixed charges, such as maintenance costs and debt service, under project agreements.
Definition of "Fixed Charge Coverage Ratio" in telecommunications agreements
This definition connects "Fixed Charge Coverage Ratio" to network sustainability.
"Fixed Charge Coverage Ratio" means the ratio of a telecom provider’s earnings before fixed charges to its recurring financial commitments, such as equipment leases and network maintenance.
Definition of "Fixed Charge Coverage Ratio" in public-private partnership (PPP) agreements
This definition links "Fixed Charge Coverage Ratio" to government-funded projects.
"Fixed Charge Coverage Ratio" includes the ratio of a PPP project’s net revenue to its fixed financial obligations, demonstrating its ability to meet contractual payment terms.
Definition of "Fixed Charge Coverage Ratio" in agricultural operations
This definition ties "Fixed Charge Coverage Ratio" to farming operations.
"Fixed Charge Coverage Ratio" refers to the ratio of a farm’s operating income to its fixed charges, such as equipment leases and mortgage payments, as part of financial performance metrics.
Definition of "Fixed Charge Coverage Ratio" in distressed debt agreements
This definition connects "Fixed Charge Coverage Ratio" to creditor recovery.
"Fixed Charge Coverage Ratio" means the ratio of a distressed borrower’s adjusted cash flow to its fixed obligations, used by creditors to assess repayment potential.
Definition of "Fixed Charge Coverage Ratio" in airport lease agreements
This definition links "Fixed Charge Coverage Ratio" to tenant financial stability.
"Fixed Charge Coverage Ratio" refers to the ratio of an airport tenant’s net operating income to its fixed financial commitments, including rent and utility charges, under the lease agreement.
Definition of "Fixed Charge Coverage Ratio" in healthcare financing agreements
This definition ties "Fixed Charge Coverage Ratio" to hospital operations.
"Fixed Charge Coverage Ratio" means the ratio of a healthcare facility’s cash flow to its fixed obligations, such as loan repayments and equipment leases, ensuring financial sustainability.
Definition of "Fixed Charge Coverage Ratio" in education funding agreements
This definition connects "Fixed Charge Coverage Ratio" to institutional viability.
"Fixed Charge Coverage Ratio" refers to the ratio of a school or university’s operating income to its fixed charges, demonstrating its ability to meet financial commitments.
Definition of "Fixed Charge Coverage Ratio" in renewable energy projects
This definition links "Fixed Charge Coverage Ratio" to project finance.
"Fixed Charge Coverage Ratio" includes the ratio of a renewable energy project’s net revenue to its fixed financial obligations, such as loan payments and equipment maintenance costs.
Definition of "Fixed Charge Coverage Ratio" in retail financing agreements
This definition ties "Fixed Charge Coverage Ratio" to tenant performance.
"Fixed Charge Coverage Ratio" refers to the ratio of a retailer’s operating income to its fixed costs, such as rent and utility payments, to evaluate eligibility for financing.
Definition of "Fixed Charge Coverage Ratio" in debt service agreements
This definition connects "Fixed Charge Coverage Ratio" to loan repayment capacity.
"Fixed Charge Coverage Ratio" means the ratio of a borrower’s cash flow to its debt service and fixed charges, used to determine compliance with debt covenants.
Definition of "Fixed Charge Coverage Ratio" in utility service contracts
This definition links "Fixed Charge Coverage Ratio" to operational funding.
"Fixed Charge Coverage Ratio" includes the ratio of a utility company’s net operating income to its fixed obligations, such as equipment leases and bond repayments.
Definition of "Fixed Charge Coverage Ratio" in hospitality franchise agreements
This definition ties "Fixed Charge Coverage Ratio" to franchisee evaluation.
"Fixed Charge Coverage Ratio" refers to the ratio of a hospitality franchisee’s EBITDA to its fixed costs, such as royalty fees and property leases, demonstrating financial performance.
Definition of "Fixed Charge Coverage Ratio" in capital expenditure planning
This definition connects "Fixed Charge Coverage Ratio" to budgeting.
"Fixed Charge Coverage Ratio" means the ratio of a company’s available cash flow to its fixed charges, used to determine capacity for additional capital expenditures.
Definition of "Fixed Charge Coverage Ratio" in mining operations
This definition links "Fixed Charge Coverage Ratio" to resource-based projects.
"Fixed Charge Coverage Ratio" refers to the ratio of a mining operation’s earnings before fixed charges to its recurring financial obligations, ensuring project feasibility.
Definition of "Fixed Charge Coverage Ratio" in shipping agreements
This definition ties "Fixed Charge Coverage Ratio" to fleet financing.
"Fixed Charge Coverage Ratio" means the ratio of a shipping company’s operating income to its fixed costs, such as vessel leases and maintenance expenses.
Definition of "Fixed Charge Coverage Ratio" in cross-border financing
This definition connects "Fixed Charge Coverage Ratio" to international borrowers.
"Fixed Charge Coverage Ratio" refers to the ratio of a borrower’s cash flow to its fixed obligations, ensuring financial stability for cross-border loans under international agreements.
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