The fixed-charges-coverage ratio calculation takes into account other operating expenses such as salaries and research and development.

Question

Quizplus · Accepted Answer

The fixed-charges-coverage ratio primarily focuses on a company's ability to cover its fixed charges, such as interest and lease expenses, and does not directly include other operating expenses like salaries and research and development in its calculation.

The Fixed-Charges-Coverage Ratio Calculation Takes into Account Other Operating Expenses