Green Penguin Pencil Company has a total asset turnover ratio of 9.00, net annual sales of $25,000,000, and operating expenses of $18,750,000 (including depreciation and amortization). On its current balance sheet and income statement, respectively, it reported total debt of $1,250,000, on which it pays 11% interest on its outstanding debt. Value To analyze a company's financial leverage situation, you need to measure the firm's debt management ratios. Based on the preceding information, what are the values for Green Penguin Pencil's debt management ratios? Ratio Debt ratio Times-interest-earned ratio Green Penguin Pencil Company raises around from creditors for each dollar of equity. Influenced by a firm's ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to give loans to companies with times-interest-earned ratios (TIE)