Excerpts from a Companys data: A= better, B = worst, C = average, compared to the Norm

Financial Measures	2019	2020	Average = Columns (2+3)/2	Norm	Industry Evaluation
Average collection (days)	80 days	70 days	_______	75 days	______
Times Interest Earned (TIE)	15 times	19 times	________	11 times	__________
Debt Ratio	40%	30%	_________	45%	_____
Return on Equity (ROE)	24%	28%	_______	20%	________

a. Fill in the banks above first (upload your completed table only if you could, otherwise answer

"b" to "d" based on the information derived here )

b. The average collection for the company is better than the norm, worst than the norm, neither

better nor worst, than the norm.

c. Times Interest Earned (TIE) ratio is the most useful measure for determining indebtedness or

shying away from better leveraging. Explain using the data above.

d. From the above data and using the TIE ratio as the basis, then we could conclude:

The amount of debt is appropriate, too much debt, too less debt. Explain