coverage of fixed charges

简明释义

固定费用比数

英英释义

例句

1.To maintain a healthy coverage of fixed charges, the firm decided to cut unnecessary expenses.

为了维持健康的固定费用覆盖率，公司决定削减不必要的开支。

2.Investors often look for a high coverage of fixed charges to assess the risk of default.

投资者通常寻找较高的固定费用覆盖率来评估违约风险。

3.The CFO explained how the coverage of fixed charges improved due to increased revenues.

首席财务官解释了由于收入增加，固定费用覆盖率如何改善。

4.The company reported a strong coverage of fixed charges last quarter, indicating solid financial health.

该公司上个季度报告了强劲的固定费用覆盖率，这表明财务状况良好。

5.A low coverage of fixed charges can signal potential liquidity issues within a business.

低固定费用覆盖率可能表明企业存在潜在流动性问题。

作文

The financial health of a company can often be measured by various metrics, one of which is the coverage of fixed charges. This term refers to the ability of a company to meet its fixed financial obligations, such as interest payments on debt and lease expenses. Essentially, it assesses how well a company's earnings can cover these fixed costs. Understanding the coverage of fixed charges is crucial for investors and stakeholders because it provides insight into the company's operational efficiency and financial stability.To elaborate, let’s consider a hypothetical company, ABC Corp. Suppose ABC Corp has an annual earnings before interest and taxes (EBIT) of $1 million. Its fixed charges, which include interest payments of $200,000 and lease payments of $100,000, total $300,000. To calculate the coverage of fixed charges, we would divide the EBIT by the total fixed charges. In this case, the calculation would be:Coverage = EBIT / Fixed Charges = $1,000,000 / $300,000 = 3.33.This means that ABC Corp earns 3.33 times what it needs to cover its fixed charges, indicating a strong financial position. A coverage ratio above 1 suggests that the company generates enough income to cover its fixed costs, while a ratio below 1 indicates potential trouble in meeting those obligations.Investors often look for a healthy coverage of fixed charges when evaluating a company's risk profile. A higher ratio not only reflects a buffer against downturns in business but also indicates that the company can invest in growth opportunities or return capital to shareholders without jeopardizing its financial commitments. Conversely, a low coverage ratio may signal that a company is over-leveraged or facing declining revenues, which could lead to financial distress.Moreover, the coverage of fixed charges can vary significantly across industries. For instance, utility companies typically have stable revenue streams and thus might maintain higher coverage ratios. In contrast, technology startups, which often face volatility in earnings, may exhibit lower ratios as they invest heavily in growth.In conclusion, understanding the coverage of fixed charges is essential for assessing a company’s financial health. It serves as a critical indicator for investors, creditors, and management alike. By analyzing this metric, stakeholders can make informed decisions regarding investment opportunities, creditworthiness, and strategic planning. Therefore, a thorough analysis of a company’s fixed charge coverage should be part of any comprehensive financial review, ensuring that all parties involved have a clear picture of the organization’s ability to sustain its operations and fulfill its financial commitments.

公司的财务健康状况通常可以通过多种指标来衡量，其中之一就是固定费用的覆盖率。这个术语指的是公司满足其固定财务义务的能力，例如债务利息支付和租赁费用。基本上，它评估公司的收益在多大程度上能够覆盖这些固定成本。理解固定费用的覆盖率对投资者和利益相关者至关重要，因为它提供了对公司运营效率和财务稳定性的洞察。为了详细说明，让我们考虑一个假设的公司，ABC 公司。假设 ABC 公司的年息税前利润（EBIT）为100万美元。其固定费用，包括20万美元的利息支付和10万美元的租赁支付，总计30万美元。要计算固定费用的覆盖率，我们将息税前利润除以总固定费用。在这种情况下，计算如下：覆盖率 = EBIT / 固定费用 = 1,000,000 / 300,000 = 3.33。这意味着 ABC 公司赚取的收入是其固定费用的3.33倍，表明其财务状况良好。覆盖率高于1表示公司产生的收入足以覆盖其固定成本，而低于1则表明在满足这些义务方面可能存在潜在问题。投资者通常在评估公司的风险状况时，会关注健康的固定费用的覆盖率。较高的比率不仅反映出抵御业务下滑的缓冲区，还表明公司能够在不危及其财务承诺的情况下投资于增长机会或向股东返还资本。相反，低覆盖率可能表明公司杠杆过高或收入下降，这可能导致财务困境。此外，固定费用的覆盖率在不同的行业之间可能有显著差异。例如，公用事业公司通常拥有稳定的收入流，因此可能维持较高的覆盖率。相比之下，科技初创公司由于面临收益波动，可能表现出较低的比率，因为它们在增长上投入大量资金。总之，理解固定费用的覆盖率对于评估公司的财务健康至关重要。它作为投资者、债权人和管理层的关键指标。通过分析这一指标，利益相关者可以就投资机会、信用状况和战略规划做出明智的决策。因此，对公司固定费用覆盖率的全面分析应成为任何综合财务审查的一部分，确保所有相关方清楚了解组织维持运营和履行财务承诺的能力。