Question
For Bazza enterprises, what was the Debt/EBITDA for 2016, 2017 and 2018? a) 3.6X, 4.5X, 2.2X b) 3.5X, 4.1X, 2.1X c) 3.5X, 4.4X, 2.2X Based
For Bazza enterprises, what was the Debt/EBITDA for 2016, 2017 and 2018?
a) 3.6X, 4.5X, 2.2X
b) 3.5X, 4.1X, 2.1X
c) 3.5X, 4.4X, 2.2X
Based on the answer to the question above what are the numbers showing us?
a) Bazza Enterprises has seen large declines in its use of debt resulting in an improvement in the Debt/EBITDA ratio?
b) Although the ratio peaked in 2017, Bazza Enterprises while still increasing its level of debt in 2018 (versus 2017) has increased its earnings at a higher rate, reducing the ratio dramatically? c) Bazza Enterprises has seen continued growth in its Debt/EBITDA ratio resulting in the company becoming more highly leveraged?
Using the information from the chart above, and the new chart below,
2016 2017 2018
Cash 250.0 350.7 620.5
Accounts Payable 137.5 178.9 249.3
Current maturities of long-term debt 44.0 542.4 627.4
Long Term Debt 9,711.5 8,821.2 9,631.4
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started