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Blue Sky Drone Company has a total asset turnover ratio of 6 . 0 0 x , net annual sales of $ 4 0 million,

Blue Sky Drone Company has a total asset turnover ratio of 6.00x, net annual sales of $40 million, and operating expenses of $18 million (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $2.50 million on which it pays a 11% interest rate. Blue Sky Drone Company has a total asset turnover ratio of 6.00x, net annual sales of $40 million, and operating expenses of $18 million (including
depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $2.50 million on which it pays a 11%
interest rate.
To analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. Based on the preceding information,
what are the values for Blue Sky Drone's debt management ratios?
Influenced by a firm's ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to give loans to companies
with times-interest-earned ratios (TIE).
To analyze a companys financial leverage situation, you need to measure the firms debt management ratios. Based on the preceding info
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