Houle Plumbing Products Ltd. reported the following data in 2020 (in millions): (Click the icon to view the financial statements.) Compute Houle'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 Houle $1 million? State your reason. First, compute Houle'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 Houle has 8 of Financial statements - X 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 2020 This means that Houle has s in 30.0 25.5 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.) Net operating revenues Operating expenses Operating income Non-operating items: 4.5 Time-interest-earned ratio Interest expense (1.5) (0.7) Other This means that $ 2.3 Net income Would you be willing to lend Houle $1 million? State your reason. $ 200.0 Total assets. Houle's debt ratio is and the company V its existing interest expense. be willing to lend Houle $1 million. 74.0 Total shareholders' equity Print Done Houle Plumbing Products Ltd. reported the following data in 2020 (in millions): (Click the icon to view the financial statements.) Compute Houle'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 Houle $1 million? State your reason. First, compute Houle'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 Houle has 8 of Financial statements - X 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 2020 This means that Houle has s in 30.0 25.5 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.) Net operating revenues Operating expenses Operating income Non-operating items: 4.5 Time-interest-earned ratio Interest expense (1.5) (0.7) Other This means that $ 2.3 Net income Would you be willing to lend Houle $1 million? State your reason. $ 200.0 Total assets. Houle's debt ratio is and the company V its existing interest expense. be willing to lend Houle $1 million. 74.0 Total shareholders' equity Print Done
