what is the fixed charge coverage ratio fccr 
the fixed charge coverage ratio fccr measures a firm s ability to cover its fixed charges such as debt payments interest expenses and equipment lease expenses it shows how well a company s earnings can cover its fixed expenses banks will often look at this ratio when evaluating whether to lend money to a business candra huff investopediaformula for the fixed charge coverage ratio fccr f c c r e b i t f c b t f c b t i where e b i t earnings before interest and taxes f c b t fixed charges before tax i interest begin aligned fccr frac ebit fcbt fcbt i textbf where ebit text earnings before interest and taxes fcbt text fixed charges before tax i text interest end aligned fccr fcbt iebit fcbt where ebit earnings before interest and taxesfcbt fixed charges before taxi interest 