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C. Solvency Ratios Ratio Formula & Number used Current Year Prior Year Debt to total assets total liabilities/total assets 0.24 0.23 Cash debt coverage operating
C. Solvency Ratios | |||||||
Ratio | Formula & Number used | Current Year | Prior Year | ||||
Debt to total assets | total liabilities/total assets | 0.24 | 0.23 | ||||
Cash debt coverage | operating cash flow/total liabilities | 0.60 | 0.64 | ||||
Times interest earned | (net income + interest expense + income tax expense)/interest expense | 45.81 | 68.76 | ||||
Free Cash Flow | net cash provided by operating activities - capital expidentures - dividends | 94,610 | 95,844 | ||||
Evaluate solvency: what do above ratios suggest? |
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