The fixed charge coverage ratio, on the other hand ... All sunk costs are fixed costs in financial accounting, but not all fixed costs are considered to be sunk. The defining characteristic ...

By analyzing this ratio, decision-makers can gauge ... Note: This calculation uses average fixed assets for simplicity, without accounting for accumulated depreciation. Some investors might ...

A measure of a firm's ability to meet its fixed-charge obligations: the ratio of (Earnings before interest, depreciation and amortization minus unfunded capital expenditures and distributions ...