coverage of fixed charges

简明释义

固定应付项目准备总额

英英释义

例句

1.During the audit, the accountant assessed the coverage of fixed charges to ensure financial health.

在审计过程中，会计师评估了固定费用的覆盖率以确保财务健康。

2.The company's financial report highlighted the coverage of fixed charges as a key indicator of its stability.

公司的财务报告强调了固定费用的覆盖率作为其稳定性的关键指标。

3.A higher coverage of fixed charges suggests that a company can easily meet its debt obligations.

较高的固定费用的覆盖率表明公司能够轻松满足其债务义务。

4.Investors often look at the coverage of fixed charges to assess risk before making decisions.

投资者通常会查看固定费用的覆盖率以评估风险，然后再做出决策。

5.The management team is focused on improving the coverage of fixed charges to attract more investors.

管理团队专注于提高固定费用的覆盖率以吸引更多投资者。

作文

The concept of coverage of fixed charges is crucial in the financial analysis of a company. It refers to the ability of a firm to meet its fixed financial obligations, such as interest payments on debt and lease expenses. Understanding this coverage is essential for investors, creditors, and management alike, as it indicates the financial health and stability of the organization.To begin with, fixed charges are those expenses that do not change with the level of sales or production. They remain constant regardless of how well the business performs. This includes items like loan interest, rent, and insurance premiums. The coverage of fixed charges measures how well a company's earnings can cover these fixed costs. A higher ratio indicates that a company is more capable of meeting its fixed obligations, which is a positive sign for stakeholders.Calculating the coverage of fixed charges involves using the formula: Earnings Before Interest and Taxes (EBIT) divided by the total fixed charges. For instance, if a company has an EBIT of $1 million and fixed charges of $400,000, the coverage ratio would be 2.5. This means the company earns 2.5 times what it needs to pay its fixed charges, suggesting strong financial health.Moreover, the significance of the coverage of fixed charges extends beyond mere calculations. It provides insights into a company's risk profile. Companies with low coverage ratios may struggle during economic downturns or periods of reduced revenue, as they might find it challenging to meet their fixed obligations. This can lead to financial distress, potential bankruptcy, or the need for restructuring. Therefore, investors often scrutinize this metric when assessing the risk associated with a particular investment.In addition, the coverage of fixed charges can also impact a company's credit rating. Rating agencies evaluate this ratio as part of their assessment process. A strong coverage ratio can lead to a higher credit rating, which, in turn, allows companies to secure financing at lower interest rates. Conversely, a weak coverage ratio may result in a downgrade, making it more expensive for the company to borrow money.Furthermore, management teams use the coverage of fixed charges to make informed decisions regarding capital structure and operational efficiency. By monitoring this ratio, they can identify whether they need to adjust their financing strategies, such as refinancing existing debt or reducing fixed costs. This proactive approach helps ensure that the company maintains a healthy balance sheet and is prepared for future challenges.In conclusion, the coverage of fixed charges is a vital financial metric that reflects a company's ability to meet its fixed obligations. It serves as an indicator of financial health, risk, and creditworthiness. For investors and management, understanding this coverage is essential in making informed decisions that can affect the long-term sustainability and growth of the business. As such, it is important for all stakeholders to pay close attention to this ratio and its implications for the overall financial strategy of the company.

固定费用覆盖率的概念在公司的财务分析中至关重要。它指的是公司满足其固定财务义务（如债务利息支付和租赁费用）的能力。理解这一覆盖率对投资者、债权人和管理层来说都很重要，因为它表明了组织的财务健康和稳定性。首先，固定费用是指那些不随销售或生产水平变化而变化的费用。无论业务表现如何，这些费用都是固定的。这包括贷款利息、租金和保险费等项目。固定费用覆盖率衡量的是公司收益能否覆盖这些固定成本。较高的比率表明公司更有能力满足其固定义务，这对利益相关者来说是一个积极的信号。计算固定费用覆盖率涉及使用以下公式：息税前利润（EBIT）除以总固定费用。例如，如果一家公司拥有100万美元的EBIT和40万美元的固定费用，则覆盖率为2.5。这意味着公司赚取的金额是其固定费用的2.5倍，这表明财务状况良好。此外，固定费用覆盖率的重要性超越了单纯的计算。它提供了对公司风险状况的深入了解。覆盖率低的公司可能在经济低迷或收入减少的时期面临困难，因为它们可能难以满足固定义务。这可能导致财务困境、潜在破产或重组的需要。因此，投资者在评估特定投资的风险时，通常会仔细审查这一指标。此外，固定费用覆盖率还会影响公司的信用评级。评级机构在评估过程中会考虑这一比率。强劲的覆盖率可以导致更高的信用评级，从而使公司能够以较低的利率获得融资。相反，弱覆盖率可能导致降级，使公司借款的成本更高。此外，管理团队利用固定费用覆盖率做出有关资本结构和运营效率的明智决策。通过监测这一比率，他们可以识别是否需要调整融资策略，例如再融资现有债务或降低固定成本。这种主动的方法有助于确保公司保持健康的资产负债表，并为未来挑战做好准备。总之，固定费用覆盖率是一个重要的财务指标，反映了公司满足其固定义务的能力。它作为财务健康、风险和信用worthiness的指标。对于投资者和管理层而言，理解这一覆盖率对于做出可能影响企业长期可持续性和增长的明智决策至关重要。因此，所有利益相关者都应密切关注这一比率及其对公司整体财务战略的影响。