Evensen Plumbing Products Ltd. reported the following data in 2020 (in millions): (Click the icon to view the financial statements.) Compute Evensen's leverage ratio, debt ratio, and times-interest-earned ratio, and write a sentence to explain what those ratio values mean. Would you be willing to lend Evensen $1 million? State your reason. First, compute Evensen's leverage ratio. Determine the formula for the leverage ratio. Then, complete the formula and calculate the leverage ratio. (Enter all amounts in millions. Round your answer to two decimal places, X.XX.) Leverage ratio This means that Evensen has $ of Now, determine the formula for the debt ratio. Then, complete the formula and calculate the debt ratio. (Enter all amounts in millions. Round your answer to two decimal places, X.XX.) Debt ratio = This means that Evensen has $ in Determine the formula for the times-interest-earned ratio. Then, complete the formula and calculate the debt ratio. (Enter all amounts in millions. Round your answer to two decimal places, X.XX.) Time-interest-earned ratio This means that Would you be willing to lend Evensen $1 million? State your reason. Would you be willing to lend Evensen $1 million? State your reason. Evensen's debt ratio is and the company its existing interest expense. be willing to lend Evensen $1 million. 2020 Net operating revenues $ 29.1 24.5 Operating expenses Operating income. Non-operating items: 4.6 Interest expense (1.3) (0.2) Other $ 3.1 Net income... $ 180.0 Total assets. 63.0 Total shareholders' equity. Evensen Plumbing Products Ltd. reported the following data in 2020 (in millions): (Click the icon to view the financial statements.) Compute Evensen's leverage ratio, debt ratio, and times-interest-earned ratio, and write a sentence to explain what those ratio values mean. Would you be willing to lend Evensen $1 million? State your reason. First, compute Evensen's leverage ratio. Determine the formula for the leverage ratio. Then, complete the formula and calculate the leverage ratio. (Enter all amounts in millions. Round your answer to two decimal places, X.XX.) Leverage ratio This means that Evensen has $ of Now, determine the formula for the debt ratio. Then, complete the formula and calculate the debt ratio. (Enter all amounts in millions. Round your answer to two decimal places, X.XX.) Debt ratio = This means that Evensen has $ in Determine the formula for the times-interest-earned ratio. Then, complete the formula and calculate the debt ratio. (Enter all amounts in millions. Round your answer to two decimal places, X.XX.) Time-interest-earned ratio This means that Would you be willing to lend Evensen $1 million? State your reason. Would you be willing to lend Evensen $1 million? State your reason. Evensen's debt ratio is and the company its existing interest expense. be willing to lend Evensen $1 million. 2020 Net operating revenues $ 29.1 24.5 Operating expenses Operating income. Non-operating items: 4.6 Interest expense (1.3) (0.2) Other $ 3.1 Net income... $ 180.0 Total assets. 63.0 Total shareholders' equity
