Debt Ratios Flashcards

1
Q

Times Interest Earned Ratio

A

EBIT/Interest Expense

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2
Q

Debt to Assets

A

Total Debt/Total Assets

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3
Q

Debt to Equity

A

Total Debt/Total Shareholders Equity

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4
Q

Degree of Financial Leverage

A

1+Debt/Equity = (Dupont = Assets/Equity)

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