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Analyze financial ratios for credit risk assessment of XYZ Corporation using the following data: Ratio Calculation Value Debt Ratio Total Debt / Total Assets 0.4
- Analyze financial ratios for credit risk assessment of XYZ Corporation using the following data:
| Ratio | Calculation | Value |
|---|---|---|
| Debt Ratio | Total Debt / Total Assets | 0.4 |
| Interest Coverage Ratio | EBIT / Interest Expense | 5.0 |
| Quick Ratio | (Current Assets - Inventory) / Current Liabilities | 1.2 |
Requirements:
- Calculate key financial ratios for credit risk assessment.
- Present the analysis in a detailed table format.
- Discuss the company's creditworthiness based on the ratios.
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Financial Statement Analysis and Security Valuation
Authors: Stephen Penman
5th edition
78025311, 978-0078025310
