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Indicate whether the ratios are favorable/unfavorable in comparison to the Industry Average and explain the trend of the two ratios below. (4 marks) Analyze the
- Indicate whether the ratios are favorable/unfavorable in comparison to the Industry Average and explain the trend of the two ratios below. (4 marks)
- Analyze the implication of high Times interest earned ratio. (2 marks)
- Write down the implication of having a low Debt to Total Asset Ratio. (1.5 marks)
| 2015 | 2016 | Industry Average |
Debt to Total Assets | 10 % | 40% | 50 % |
Times interest earned | 9 | 7 | 5 |
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