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A banker is reviewing the banks current portfolio of outstanding loans and collected the following financial data (in thousands) on four companies that the bank

A banker is reviewing the banks current portfolio of outstanding loans and collected the following financial data (in thousands) on four companies that the bank has loaned money to.

Company A

Company B

Company C

Company D

Earnings before interest and income taxes

5,000

12,500

4,300

2,450

Interest expense

3,950

9,000

2,675

1,250

On the basis of the information provided above, which company has the highest relative likelihood of defaulting on an outstanding loan?

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