Debt Ratios Flashcards
1
Q
Debt Ratio
A
Total Liabilities / Total Assets
2
Q
Times Interest Earned
A
EBIT / Interest
3
Q
Fixed-Payment Coverage Ratio
A
(EBIT + Lease Payments) / (Interest + Lease Payments) + {(Principal Payments + Preferred Stock Dividends) * (1/(1-T))}