Question: What advantage does the fixed charge coverage ratio offer over simply using times interest earned? Is there any validity in rule-of-thumb ratios for all corporations,

What advantage does the fixed charge coverage ratio offer over simply using times interest earned? Is there any validity in rule-of-thumb ratios for all corporations, such as a current ratio of 2 to 1 or debt to assets of 50 percent? Why is trend analysis helpful in analyzing ratios?

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