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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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