Coverage Ratios Flashcards
1
Q
Debt to Equity
A
Debt to Equity = Long Term Debt / Shareholders Equity
2
Q
Total Debt to Assets
A
Total Debt to Assets = Total Debt / Total Assets
3
Q
Leverage
A
Leverage = Total Assets / Shareholders Equity
4
Q
Time Interest Earned
A
Time Interest Earned = EBIT / Interest
5
Q
Fixed Charges Coverage
A
Fixed Charges Coverage = (EBIT + Lease Expense) / (Interest + Lease Expenses)