Debt management ratios measure the extent to which a firm uses financial leverage and the degree of safety afforded to -Select- . They include the: (1) Debt-to-assets ratio, (2) Times interest earned ratio (TIE), and (3) EBITDA coverage ratio. The first ratio analyzes debt by looking at the firm's -Select- , while the last two ratios analyze debt by looking at the firm's -Select- . The debt-to-assets ratio measures the percentage of funds provided by -Select- . Its equation is: High debt ratios that exceed the industry average may make it costly for a firm to borrow additional funds without first raising more -Select- . The times interest earned ratio measures the extent to which -Select- income can decline before the firm is unable to meet its annual -Select- costs. Its equation is: EBIT is used as the numerator because -Select- is paid with pre-tax dollars, the firm's ability to pay -Select- is not affected by taxes. The EBITDA coverage ratio is: This ratio is more complete than the TIE ratio because it recognizes that depreciation and amortization are not -Select- expenses, so these amounts are available to service debt, and lease payments and principal repayments are fixed payments