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Dollarama reported the following selected data (in millions): 2017 2016 Total assets $1,934.3 $1,863.5 Total liabilities 2,186.7 1,763.1 Profit 519.4 445.6 Income tax expense 196.3
Dollarama reported the following selected data (in millions):
2017 | 2016 | ||||
Total assets | $1,934.3 | $1,863.5 | |||
Total liabilities | 2,186.7 | 1,763.1 | |||
Profit | 519.4 | 445.6 | |||
Income tax expense | 196.3 | 166.8 | |||
Interest expense | 39.9 | 33.0 |
(a) Calculate the debt to total assets and interest coverage ratios for 2017 and 2016. Did Dollaramas solvency improve, worsen, or remain unchanged in 2017? (Round answers to 1 decimal place, e.g. 52.2 or 52.2%.)
2017 | 2016 | |||||
Debt to total assets | % | % | ||||
Interest coverage | times | times |
The Dollaramas solvency has improvedremained unchangedhas deteriorated. |
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