Cash Flow to Fixed Charges Clause Samples

The 'Cash Flow to Fixed Charges' clause defines a financial ratio used to assess a borrower's ability to meet its fixed financial obligations, such as interest payments, lease payments, and principal repayments, from its available cash flow. This ratio is typically calculated by dividing the company's cash flow by its total fixed charges over a specified period. For example, a lender may require that this ratio remain above a certain threshold as a condition of a loan agreement. The core function of this clause is to provide a measure of financial stability and ensure that the borrower maintains sufficient cash flow to cover its fixed commitments, thereby reducing the lender's risk of default.
Cash Flow to Fixed Charges. On the last day of each fiscal quarter of the Borrowers during the periods set forth below, the sum of (a) Trailing Four Fiscal Quarter Cash Flow measured on such date minus (b) Cash Flow Adjustment for the four fiscal quarters then ending, shall equal or exceed the percentages set forth below of Consolidated Fixed Charges of the Borrowers for such four fiscal quarters then ending: Period Percentages October 30, 1998 through October 29, 1999 100% October 30, 1999 through October 27, 2000 105% October 28, 2000 and thereafter 110%
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Cash Flow to Fixed Charges. The Loan Agreement is hereby amended by deleting Subsection 8.3(D) [relating to Cash Flow to Fixed Charges] in its entirety and replacing it with the following new Subsection 8.3(D):
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Cash Flow to Fixed Charges. Not permit the ratio of Cash Flow to Fixed Charges of the Borrower to be less than (i) for the fiscal quarter ending March 31, 1997, 1.2:1.0 (or, if all or a portion of the Offering has been consummated, 1.5:1.0), (ii) for the period of two consecutive fiscal quarters ending June 30, 1997, 1.2:1.0 (or, if all or a portion of the Offering has been consummated, 1.5:1.0), (iii) for the period of three consecutive fiscal quarters ending September 30, 1997, 1.2:1.0 (or, if all or a portion of the Offering has been consummated, 1.5:1.0), (iv) for the period of four consecutive fiscal quarters ending December 31, 1997, 1.2:1.0 (or, if all or any portion of the Offering has been consummated, 1.5:1.0) and (v) for each period of four consecutive fiscal quarters ending after December 31, 1997, 1.3:1.0 (or, if all or any portion of the Offering has been consummated, 1.5:1.0).
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Cash Flow to Fixed Charges. On the last day of each fiscal quarter of the Borrowers, the sum of (a) Trailing Four Fiscal Quarter Cash Flow measured on such date minus (b) Cash Flow Adjustment for the four fiscal quarters then ending, shall equal or exceed the percentage of such Consolidated Fixed Charges for such period set forth in the table below: FISCAL QUARTERS ENDING NEAREST PERCENTAGE ------------------------------ ---------- Restatement Date through April 30, 1997................... 75% July 31, 1997 through October 31, 1997.................... 110% January 31, 1998 through October 31, 1998................. 120% January 31, 1999 and thereafter........................... 130%"
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Cash Flow to Fixed Charges. Maintain for each fiscal -------------------------- year of Borrowers a ratio of Net Cash Flow minus taxes to Fixed Charges of not less than 1.5 to 1.0 as of each fiscal year end, commencing with the fiscal year ending June 30, 2000.
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Related to Cash Flow to Fixed Charges

  • Fixed Charges the sum of (a) Net Interest Expense, (b) regularly scheduled principal payments on funded Debt paid or payable currently in cash for such period (other than payments made by the Borrowers and their Restricted Subsidiaries to the Borrowers and their Subsidiaries), and (c) Restricted Payments made under clauses (b), (c), (d), (h)(iv) (only to the extent the Borrowers would have relied on the Payment Conditions to make such Investment) and (j) of the definition of “Permitted Restricted Payments” (but excluding any Restricted Payments that are otherwise consolidated) made in cash during any fiscal period. For purposes of computing the Fixed Charge Coverage Ratio test for any fiscal period during which a Permitted Acquisition is consummated, there shall be included in Fixed Charges (without duplication) as if such Permitted Acquisition had been consummated as of the first day of such period, the Net Interest Expense and scheduled principal payments paid or payable currently in cash on Debt for borrowed money (other than revolving loans) of any Acquired Entity or Business (but not including the Net Interest Expense or Debt for borrowed money (other than revolving loans) of any related Person, property, business or assets to the extent not so acquired), based on the Net Interest Expense and Debt for borrowed money (other than revolving loans) of such Acquired Entity or Business for such period (including the portion thereof occurring prior to such acquisition) determined on a Pro Forma Basis. For purposes of computing the Fixed Charge Coverage Ratio test for any fiscal period during which a Permitted Asset Disposition is consummated, there shall be excluded in Fixed Charges (without duplication) as if such Permitted Asset Disposition had been consummated as of the first day of such period, the Net Interest Expense and scheduled principal payments paid or payable currently in cash on Debt for borrowed money (other than revolving loans) of any Disposed Entity or Business (but not excluding the Net Interest Expense or Debt for borrowed money (other than revolving loans) of any related Person, property, business or assets to the extent not so acquired), based on the Net Interest Expense and Debt for borrowed money (other than revolving loans) of such Disposed Entity or Business for such period (including the portion thereof occurring prior to such disposition) determined on a Pro Forma Basis. FLSA: the Fair Labor Standards Act of 1938. Flood Insurance Laws: collectively, (i) National Flood Insurance Reform Act of 1994 (which comprehensively revised the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973) as now or hereafter in effect or any successor statute thereto, (ii) the Flood Insurance Reform Act of 2004 as now or hereafter in effect or any successor statute thereto and (iii) the ▇▇▇▇▇▇▇-▇▇▇▇▇▇ Flood Insurance Reform Act of 2012 as now or hereafter in effect or any successor statute thereto.

  • 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.

  • Fixed Charges Coverage Ratio The Company will not permit the Consolidated Fixed Charge Coverage Ratio to be less than 2.00 to 1.00.

  • 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.