Business
Business, 28.12.2019 04:31, markitakimbrough69

Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to . they include the: (1) debt-to-assets ratio, (2) times interest earned ratio (tie), and (3) ebitda coverage ratio. the first ratio analyzes debt by looking at the firm's , while the last two ratios analyze debt by looking at the firm's . the debt-to-total-assets ratio measures the percentage of funds provided by . its equation is: high debt ratios that exceed the industry average may make it costly for a firm to borrow additional funds without first raising more . the times interest earned ratio measures the extent to which income can decline before the firm is unable to meet its annual payments. its equation is: ebit is used as the numerator because is paid with pretax dollars—the firm's ability to pay is not affected by taxes. the ebitda coverage ratio is: this ratio is more complete than the tie ratio because it recognizes that depreciation and amortization are not expenses, so these amounts are available to service debt, and lease payments and

answer
Answers: 3

Other questions on the subject: Business

image
Business, 22.06.2019 07:10, Derienw6586
Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.
Answers: 3
image
Business, 22.06.2019 16:10, nsheikh2407
Regarding the results of a swot analysis, organizational weaknesses are (a) internal factors that the organization may exploit for a competitive advantage (b) internal factors that the organization needs to fix in order to be competitive (c) mbo skills that should be emphasized (d) skills and capabilities that give an industry advantages problems that a specific industry needs to correct
Answers: 1
image
Business, 22.06.2019 16:40, yoooo9313
An electronics store is running a promotion where for every video game purchased, the customer receives a coupon upon checkout to purchase a second game at a 50% discount. the coupons expire in one year. the store normally recognized a gross profit margin of 40% of the selling price on video games. how would the store account for a purchase using the discount coupon?
Answers: 3
image
Business, 22.06.2019 18:10, paolacorazza
Why would an investor invest in your stocks
Answers: 1
Do you know the correct answer?
Debt management ratios measure the extent to which a firm uses financial leverage and the degree of...

Questions in other subjects:

Konu
Biology, 25.09.2019 11:10
Konu
History, 25.09.2019 11:10