Green Penguin Pencil Company has a total asset turnover ratio of 8.50x, net annual sales of $25 million, and operating expenses of $11.25 million (including depreciation and amortization). On its current balance sheet and income statement, respectively, it reported total debt of $1.75 million, on which it pays 7% interest on its outstanding debt.

To analyze a companys financial leverage situation, you need to measure the firms debt management ratios. Based on the preceding information, what are the values for Green Penguin Pencils debt management ratios? (Note: Do not round intermediate calculations.)

Ratio	Value
Debt ratio
Times-interest-earned ratio

Green Penguin Pencil Company raises around from creditors for each dollar of equity.

Influenced by a firms ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to give loans to companies with debt ratios.