eBook Debt Management Ratios Financial statements for Steele Inc. follow. Net sales Cost of goods sold Steele Inc. Consolidated Income Statements (in thousands except per share amounts) Gross margin General and administrative expenses Special and nonrecurring items Operating income Interest expense Other income Gain on sale of investments Income before income taxes Provision for income taxes Net income Steele Inc. 2023 $7,245,088 2022 2021 $6,944,296 $6,149,218 (5,286,253) (4,953,556) (4,355,675) $1,958,835 $1,990,740 $1,793,543 (1,259,896) (1,202,042) (1,080,843) 2,617 0 0 $701,556 $788,698 $712,700 (63,685) (62,398) (63,927) 7,308 10,080 11,5291 0 9,117 0 $645,179 $745,497 $660,302 (254,000) (290,000) (257,000) $391,179 $455,497 $403,302 Consolidated Balance Sheets ASSETS Current assets: Cash and equivalents Accounts receivable Inventories Other Total current assets Property and equipment, net Other assets Total assets Steele Inc. Consolidated Balance Sheets (in thousands) LIABILITIES AND STOCKHOLDERS' EQUITY Dec. 31, 2023 Dec. 31, 2022 $320,558 $41,235 1,056,911 837,377 733,700 803,707 109,456 101,811 $2,220,625 $1,784,130 1,666,588 1,813,948 247,892 248,372 $4,135,105 $3,846,450 Current liabilities: Accounts payable $250,363 $309,092 Accrued expenses Other current liabilities. Income taxes 347,892 274,220 15,700. 0 93,489 137,466 Total current liabilities $707,444 $720,778 Long-term debt 650,000 541,639 Deferred income taxes 275,101 274,844 Other long-term liabilities 61.267 41.572 Dererred income taxes Other long-term liabilities Total liabilities Stockholders' equity: 275,101 274,844 41,572 61,267 1,693,812 1,578,833 Preferred stock $100,000 $100,000 Common stock 89,727 89,727 Additional paid-in capital-common stock 128,906 127,776 Retained earnings 2,397,112 2,136,794 $2,715,745 $2,454,297 Less: Treasury stock, at cost Total stockholders' equity < Total liabilities and stockholders' equity Required: (274,452) (186,680) $2,441,293 $2,267,617 $4,135,105 $3,846,450 1. Compute the five debt management ratios for 2022 and 2023. Round your answers to two decimal places. Times interest earned Debt to equity ratio 2023 2022 Debt to total assets ratio Long-term debt to equity ratio Long-term debt to total assets ratio 4,400 X 2. Conceptual Connection: Indicate whether the ratios have changed significantly from 2022 to 2023. Times interest earned ratio decreased, other ratios did not change by much