Fixed charges-Meaning,Examples,The Fixed Charge Coverage Ratio Commerce Achiever

For example, during the 2008 recession, automobile sales plummeted, putting the auto manufacturing industry in jeopardy. 1 Another example of an unforeseen incident that could impair interest coverage ratios is a workers’ strike. They must rely on a higher ability to cover interest to accommodate for periods of poor revenues. Because sectors differ so greatly, […]