Chemistry

Chemistry, 21.09.2019 17:50, Yellow78

Measure the extent to which a firm relies on debt to finance ongoing operations.
a. leverage ratios
b. asset management ratios
c. liquidity ratios
d. profitability ratios

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Business, 20.09.2019 16:30, aceccardi03

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-capital 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-capital 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 principal repayments are fixed payments.

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Business, 20.09.2019 18:10, 21hendlill

Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to 1 . 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' statementincome statementbalance sheetitem 2 , while the last two ratios analyze debt by looking at the firm' statementincome statementbalance sheetitem 3 . the debt-to-total-assets ratio measures the percentage of funds provided 4 . 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 5 . the times interest earned ratio measures the extent to 6 income can decline before the firm is unable to meet its 7 payments. its equation is: ebit is used as the numerator 8 is paid with pretax dollars—the firm's ability to 9 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 10 expenses, so these amounts are available to service debt, and lease payments and principal repayments are fixed payments.

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Business, 18.10.2019 19:00, maliekadeans8499

Blue sky drone company has a total asset turnover ratio of 8.00, net annual sales of $25,000,000, and operating expenses of $18,750,000 (including depreciation and amortization). on its current balance sheet and income statement, respectively, it reported total debt of $1,406,250, on which it pays 7% interest on its outstanding debt. to analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. based on the preceding information, what are the values for chilly moose fruit's debt management ratios?

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Measure the extent to which a firm relies on debt to finance ongoing operations.
a. leverage r...

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