Minimum Fixed Charges Ratio Clause Samples

The Minimum Fixed Charges Ratio clause sets a required threshold for the ratio of a company's earnings to its fixed financial obligations, such as interest payments and lease expenses. In practice, this clause obligates the borrower to maintain a certain level of income relative to these fixed charges, often measured quarterly or annually, to ensure ongoing financial health. Its core function is to protect lenders by ensuring the borrower remains capable of meeting essential payment obligations, thereby reducing the risk of default.
Minimum Fixed Charges Ratio. The Borrower will not permit the Fixed Charges Ratio to be less than 1.75 to 1.00.
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Minimum Fixed Charges Ratio. As at the end of each fiscal quarter, the Fixed Charges Ratio shall not be less than 1.75 to 1.
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Related to Minimum Fixed Charges Ratio

  • 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.

  • 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 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.