Debt Ratios Flashcards

1
Q

Debt Ratio

A

Total Liabilities / Total Assets

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2
Q

Times Interest Earned

A

EBIT / Interest

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3
Q

Fixed-Payment Coverage Ratio

A

(EBIT + Lease Payments) / (Interest + Lease Payments) + {(Principal Payments + Preferred Stock Dividends) * (1/(1-T))}

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