Calculation of Fixed Charge Ratio Clause Samples

The Calculation of Fixed Charge Ratio clause defines how to determine the ratio of a company's earnings to its fixed financial obligations, such as interest and lease payments. Typically, this involves dividing earnings before interest, taxes, depreciation, and amortization (EBITDA) by the sum of fixed charges over a specified period, ensuring that the company maintains a minimum level of financial health. This clause is essential for lenders or investors to monitor a borrower's ability to meet ongoing financial commitments, thereby managing credit risk and ensuring the borrower's continued solvency.
Calculation of Fixed Charge Ratio. Required whether or not compliance under Section 6.03 of the Credit Agreement is then required. Calculated for the most recently ended four fiscal quarters. 1. Adjusted Consolidated EBITDA1417 for such period (all calculated on a Consolidated basis in accordance with GAAP (excluding any non-cash income already deducted from Consolidated Net Income in the calculation of Adjusted Consolidated EBITDA in a prior period)): (a) Consolidated Net Income for such period: Plus the following, without duplication and to extent deducted in determining Consolidated Net Income for such period:
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Calculation of Fixed Charge Ratio. Required whether or not compliance under Section 6.03 of the Credit Agreement is then required. Calculated for the most recently ended four fiscal quarters.
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Related to Calculation of Fixed Charge Ratio

  • Fixed Charge Ratio Maintain a Fixed Charge Ratio as determined as of each Calculation Date of not less than 1.50: 1. The Fixed Charge Ratio covenant shall be tested by the Administrative Agent as of each Calculation Date with results based upon the results for the most recent Calculation Period, such calculation and results to be verified by the Administrative Agent.

  • Fixed Charge Coverage Ratio The Borrower will not permit the Fixed Charge Coverage Ratio as of the last day of any fiscal quarter to be less than 2.00 to 1.0.

  • Minimum Fixed Charge Coverage Ratio Maintain a Fixed Charge Coverage Ratio of at least 1.25:1.00 measured at the end of each Fiscal Quarter for the four consecutive Fiscal Quarters then ended.

  • Minimum Consolidated Fixed Charge Coverage Ratio The Consolidated Fixed Charge Coverage Ratio shall not be less than 1.50 to 1.00, determined based on information for the most recent fiscal quarter annualized.

  • Consolidated Fixed Charge Coverage Ratio Permit the Consolidated Fixed Charge Coverage Ratio as of the end of any Measurement Period ending as of the end of any fiscal quarter of the Borrower to be less than 1.25 to 1.00.