SOLVENCY Flashcards
1
Q
TOTAL DEBT TO TOTAL CAPITAL RATIO
A
TOTAL DEBT / TOTAL CAPITAL
2
Q
DEBT TO EQUITY RATIO
A
TOTAL DEBT / STOCKHOLDERS’ EQUITY
3
Q
DEBT TO TOTAL ASSETS RATIO (DEBT RATIO)
A
TOTAL LIABILITIES / TOTAL ASSETS
4
Q
TIMES INTEREST EARNED RATIO
A
EBIT / INTEREST EXPENSE
5
Q
EARNINGS TO FIXED CHARGES RATIO (FIXED CHARGE COVERAGE RATIO)
A
EARNINGS BEFORE FIXED CHARGES AND TAXES / FIXED CHARGES
FIXED CHARGES INCLUDE: INTEREST, REQUIRED PRINCIPLE REPAYMENTS, LEASES
6
Q
CASH FLOW TO FIXED CHARGES RATIO
A
(CASH FLOW FROM OPS + FIXED CHARGES + TAX PAYMENTS) / FIXED CHARGES
(NOTE: CASH FROM OPS IS AFTER TAX)
