Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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2020 | 2019 | Industry Average | |
Debt to total assets | .3% | .2% | 50% |
Times interest earned | 2days | 3days | 2.5 times |
Fixed charge coverage | 3times | 3times | 2.1 times |
Using the values computed above, evaluate the debt to total assets, times interest earned, and the fixed charge coverage ratios as a trend analysis (year-over-year) and when compared to the industry averages. What do these numbers tell us about the company’s debt utilization for each ratio?
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