Fixed charge coverage ratio: define the obligations before calculating
Calculate fixed-charge coverage under two stated conventions, reconcile debt service, and test a fictional covenant without double-counting lease payments.
THE FINX JOURNAL LEARN BY DOING
Better models.
Clearer thinking.
Practical guides to Excel and financial modelling. Work through the details, understand the mistakes, and build with more confidence.
START WITH THE FUNDAMENTALS
Budget vs forecast: update expectations without rewriting the plan
Learn the difference between a budget and a forecast with a dated monthly case: a variance bridge, two forecast versions and the annualising trap.
Work through the guideKeep building your understanding
THE READING LIST
INDEX MATCH with multiple criteria: solve a finance lookup exercise
Practise INDEX MATCH on a fictional ledger: entity, account and date criteria, a duplicate combination, a missing one and a text-stored date — with worked answers.
Remove duplicates in Excel: protect legitimate finance transactions
A payments ledger where look-alike rows are real transactions. Derive the composite key, preview removals with COUNTIFS, and reconcile control totals before anything is deleted.
ROIC formula: calculate returns on invested capital consistently
Build and audit a return on invested capital: reconcile NOPAT and invested capital two ways each, choose a denominator convention, and catch three inconsistencies.
Sources and uses: balance acquisition funding in a worked example
Build a sources and uses table for a fictional buyout: offer basis, refinancing, fees and the sponsor equity plug — then run the checks that catch what the plug hides.