Chilly Moose Fruit Producer has a total asset turnover ratio of $8\mathrm{.}50$x$,$ 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 $$1\mathrm{.}75$ million on which it pays a $7\%$ 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 Chilly Moose Fruit$$s debt management ratios?

Ratio

Value

Debt ratio

Times$-$interest$-$earned ratio

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 debt ratios.