what does the fixed charge coverage ratio not take into account 
the fccr doesn t consider both events affect the ratio inputs and can give a misleading conclusion unless other metrics are also considered this is why banks usually look at several other benchmarks in addition to the fixed charge coverage ratio when they evaluate a company s creditworthiness for a loan the bottom linethe fixed charge coverage ratio fccr measures how well a company s earnings can be used to cover its fixed charges such as rent utilities and debt payments lenders often use the fixed charge coverage ratio to assess a company s creditworthiness with a high fccr indicating that the business can adequately cover fixed charges based on its current earnings alone 