Debt Ratios Flashcards
1
Q
Times Interest Earned Ratio
A
EBIT/Interest Expense
2
Q
Debt to Assets
A
Total Debt/Total Assets
3
Q
Debt to Equity
A
Total Debt/Total Shareholders Equity
4
Q
Degree of Financial Leverage
A
1+Debt/Equity = (Dupont = Assets/Equity)