Long term debt coverage ratio
[DOC File]RATIO ANALYSIS - ICSI
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This ratio divides the property, plant, and equipment (net) by the long-term debt. The ratio for H.J. Heinz is aggressive with fixed assets covering only 30% of the long-term debt. That is, the creditors of H.J. Heinz have 30 cents of property, plant, and equipment covering every dollar of long-term debt. The same ratio for Hershey shows fixed ...
[DOC File]CHAPTER 16
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In addition to measures of profitability, three other measures of long-term liquidity risk are debt ratios, the cash flow from operations to total liabilities ratio, and the interest coverage ratio. 32. The long-term debt ratio (which equals total long-term debt divided by the sum of total long-term debt and total shareholders' equity) and the ...
[DOC File]Ratio of the Month: Working Capital
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Price-earnings ratio. Cash coverage ratio. Return on Assets. 2. Firm A has a Return on Equity (ROE) equal to 24%, while firm B has an ROE of 15% during the same year. Both firms have a total debt ratio (D/V) equal to 0.8. Firm A has an asset turnover ratio of 0.9, while firm B has an asset turnover ratio equal to 0.4. From this we know that
[DOC File]Chapter 5: Highlights
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The term debt and capital lease coverage ratio measures the ability of the business to cover all term debt and capital lease payments over a period of time. It is calculated as follows: Net farm income + Non-farm income + Depreciation Expense + Interest on term debt + Interest on capital leases – Owner withdrawals/Family living expense ...
[DOC File]Examples of Questions on Ratio Analysis
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c. cash debt coverage ratio. d. cash flow ratio. 96. The current cash debt coverage ratio is used to evaluate. a. solvency. b. profitability. c. liquidity. d. earning power. 97. The cash debt coverage ratio is computed by dividing net cash provided by operating activities by. a. average current liabilities. b. net sales. c. average long-term ...
[DOC File]FINANCIAL RATIOS REPORT - Michigan
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Long-term Funds. 6. DEBT SERVICE (INTEREST COVERAGE) RATIO. This shows the number of times the earnings of the firms are able to cover the fixed interest liability of the firm. This ratio therefore is also known as Interest coverage or time interest earned ratio. It is calculated by dividing the earnings before interest and tax (EBIT) by ...
[DOC File]MULTIPLE CHOICE QUESTIONS
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A. High debt-to-equity ratio, high interest coverage ratio, stable return on equity. B. Low debt-to-equity ratio, low interest coverage ratio, volatile return on equity. ... Long-term debt $7,000 Preferred stock (100 shares) 1,000 Common stock (200 shares) 7,000 The firms’ bonds are currently selling at 80% of par, generating a current market ...
Long-Term Debt Coverage Ratio | Bizfluent
Long Term Debt. DEBT SERVICE COVERAGE: This coverage ratio is an indicator of your facility’s ability to pay it’s overall debts. This ratio is calculated by dividing your net operating income by your total debt service. Ideally, you want your coverage ratio to be over 1.0, as this indicates that your operating income is sufficient to cover ...
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