Company Name Siemens

Overview: Debt Utilization Ratios

2017

2016

2015

Industry Ave

Debt Ratio (Total Liabilities / Total Assets)

Equity Ratio (Total Equity / Total Assets)

Times Interest Earned (EBIT / Interest Exp)

Interpret each of the ratios. Review the Financial Ratios Guidelines document for direction. Do you see any red flags? Does the company make greater use of debt financing or equity financing? Does the company have too much debt? How safely can the company cover its interest expense?

	2017	2016	2015	Industry Ave
Debt Ratio (Total Liabilities / Total Assets)	.64	.33	.98	.37
Equity Ratio (Total Equity / Total Assets)	32.20%	27.21%	28.65%
Times Interest Earned (EBIT / Interest Exp)	7.36	7.53	8.90