financial statement ratios Flashcards

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1
Q

What are the ratios that you need to remember?

A

Debt related
- Debt Ratio = Total debt/ total assets
- Debt to Equity ratio = total debt/ total equity
- times interest earned = EBIT/ interest expense
- EBITDA interest coverage = EBITDA / interest expense
- fixed coverage charge = (EBITDA + lease payments) / interest expense + lease payments

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