Finance And Leverage Flashcards
1
Q
How do you calculate Debt to Asset Ratio?
A
Total Debt / Total Assets
2
Q
Ho do you calculate Debt to Capitalisation?
A
Debt / Debt + Shareholders’ equity
3
Q
How do you calculate Assets to Shareholders Equity?
A
Assets / Shareholders Equity
4
Q
How do you calculate Interest Coverage Ratio?
A
EBIT / Interest Expense
5
Q
How do you calculate Times Interest Earned Ratio?
A
Net Income + Interest Expense + Income Tax Expense / Interest Expense
6
Q
How do you calculate the Cash Coverage Ratio?
A
Cash Flows from Operating Activities / Interest Paid
7
Q
How do you calculate the Debt to Equity Ratio?
A
Total Liabilities / Total Stockholders’ Equity
8
Q
How do you calculate Leverage? (Equity Multiplier)
A
Assets / Equity
