The Fixed Charge Coverage Ratio – An Essential Tool for Managing Cash Flow (July 2020)

The Fixed Charge Coverage Ratio (FCCR) is a measure of how much cash flow there is to cover fixed charges. If the ratio goes below 1, a business will go cash flow negative, absent additional financing, no matter how profitable it is. In today’s newsletter, we examine FCCR and provide suggestions for keeping yours high. Read more…