Levenge Rats: How Sandy Is the Copy Financial The event is the third bask type of The measures of ancial leverage. The supplied by credits to the funds supplied by The wounds by mally probe companies will improve the one of the iness and the risines the retums to the stockholders and constanciales ramach financed by Lundenspecially importante company will be able to pay the land the They and sociale. This called the total The market value of the equityised by the comme intimeter The market value of Sequity was. Damber 31, 20 camerate This is coming from lungo vyotherapie me. This is Anhand free to the underol day Theme number of days that the company taking to pay calculated by dividing mualdas by day perda Achatte e then disded by pude perday purchase to determine the number of days and the It haft determine the chiede con aldada gure that include e canadien gainy a rough so whether is dependenti aplies for finner Theated by the Good 5 Supplies cost of prodead Levenge Ratio: How Sundy Is the Copy Financial The event is the third besko The supplied by credits to the funds supplied by The wounds by really probe companies will improve the one of the usiness and the risiness of the retums to the stockholders and infancial ramach inanced by Landespilly more the company will be able to pay the loan in the future. They and sociale. This called the The market value of the equity is by the comme banding times the market pricepers The market value of Screequity was. Dember 31, 20 A further that there and med at This caming Belt lungowy--to the expected 2001 and we can Anhand free to the under a day of these number of days that the company taking to pay calculated by dividing mualdas by desperday Accountable are the disted by pude perde purchase to determine theme of days postular Itact determine the pathe con algo que that includes e can dengannya muda whether dependent on supplies for finance can be done by trang Good 5 Supplies conto del Leverage Ratios: How Soundly is the Company Financed? The leverage ratio is the third basic type of financial ratio. There are a number of balance sheet measures of financial leverage. The various leverage ratios measure the relationship of funds supplied by creditors to the funds supplied by owners. The use of borrowed funds by reasonably profitable companies will improve the return on equity. However, it increases the riskiness of the business and the riskiness of the retums to the stockholders, and can result in financial distress if The ratio of total assets divided by owners' equity is an indirect measure of leverage. A ratio, foe example of 6 of assets for each $1 of owner's equity indicates that 56 of assets is financed by $1 of CIWW' equity and 5 of liabilities carry by Malay Cupon by LLICON.com Chege wa Amering Company's Future Financial Health 1. Saronics' ratio of total as divided by owners' equity increased decreased from_at year end 2005 to ___at year-end 2008 The same story of increasing financial leverage is told by dividing total liabilities by total awets. 2 At year-end 2008, SciTronies total liabilities were ___of its total assets, which compared within 2005 Lenders-especially long-term lenders-want reasonable assurance that the company will be able to repay the loan in the future. They are concerned with the relationship between a company's debe and its total economic value. This ratio is called the total debt ratio at market Total liabilities Total liabilities + market value of the equity The market value of the equity is calculated by multiplying the number of shares of common stock outstanding times the market price per share. 3. The market value of SciTronics' equity was $175.000.000 at December 31, 2008, The total debt ratio at market was A fourth ratio that relates the level of debt to economic value and performance is the times interest camed ratio. This ratio relates camings before interest and takes a measure of profitability and of long-term viability to the interest expense-a measure of the level of debt. Earnings before interest and taxes Interest expense 4. SciTronics' camings before interest and taxes operating income) were 2008 and its interest charges were __Its times interesteamed was times. This represented an improvement/deterioration from the 2005 level of times A fifth and final leverage ratio is the number of days of payables. This ratio measures the average number of days that the company is taking to pay its suppliers of raw materials and components. It is calculated by dividing annual purchases by 365 days to determine average purchases per day Annual purchases 365 days Accounts payable are then divided by average purchases per day: Accounts payable Average purchases per day to determine the number of days od purchases that are still unpaid. It is often difficult to determine the purchases of a firm. Instead, the income statement shows the cost of goods sold, a figure that includes not only raw materials but also labor and overhead. Thus one can often gain only a rough idea as to whether a firm is becoming more or less dependent on its suppliers for finance. This can be done by tracking the pattern over time of accounts payable as a percent of cost of goods sold Levenge Rats: How Sandy Is the Copy Financial The event is the third bask type of The measures of ancial leverage. The supplied by credits to the funds supplied by The wounds by mally probe companies will improve the one of the iness and the risines the retums to the stockholders and constanciales ramach financed by Lundenspecially importante company will be able to pay the land the They and sociale. This called the total The market value of the equityised by the comme intimeter The market value of Sequity was. Damber 31, 20 camerate This is coming from lungo vyotherapie me. This is Anhand free to the underol day Theme number of days that the company taking to pay calculated by dividing mualdas by day perda Achatte e then disded by pude perday purchase to determine the number of days and the It haft determine the chiede con aldada gure that include e canadien gainy a rough so whether is dependenti aplies for finner Theated by the Good 5 Supplies cost of prodead Levenge Ratio: How Sundy Is the Copy Financial The event is the third besko The supplied by credits to the funds supplied by The wounds by really probe companies will improve the one of the usiness and the risiness of the retums to the stockholders and infancial ramach inanced by Landespilly more the company will be able to pay the loan in the future. They and sociale. This called the The market value of the equity is by the comme banding times the market pricepers The market value of Screequity was. Dember 31, 20 A further that there and med at This caming Belt lungowy--to the expected 2001 and we can Anhand free to the under a day of these number of days that the company taking to pay calculated by dividing mualdas by desperday Accountable are the disted by pude perde purchase to determine theme of days postular Itact determine the pathe con algo que that includes e can dengannya muda whether dependent on supplies for finance can be done by trang Good 5 Supplies conto del Leverage Ratios: How Soundly is the Company Financed? The leverage ratio is the third basic type of financial ratio. There are a number of balance sheet measures of financial leverage. The various leverage ratios measure the relationship of funds supplied by creditors to the funds supplied by owners. The use of borrowed funds by reasonably profitable companies will improve the return on equity. However, it increases the riskiness of the business and the riskiness of the retums to the stockholders, and can result in financial distress if The ratio of total assets divided by owners' equity is an indirect measure of leverage. A ratio, foe example of 6 of assets for each $1 of owner's equity indicates that 56 of assets is financed by $1 of CIWW' equity and 5 of liabilities carry by Malay Cupon by LLICON.com Chege wa Amering Company's Future Financial Health 1. Saronics' ratio of total as divided by owners' equity increased decreased from_at year end 2005 to ___at year-end 2008 The same story of increasing financial leverage is told by dividing total liabilities by total awets. 2 At year-end 2008, SciTronies total liabilities were ___of its total assets, which compared within 2005 Lenders-especially long-term lenders-want reasonable assurance that the company will be able to repay the loan in the future. They are concerned with the relationship between a company's debe and its total economic value. This ratio is called the total debt ratio at market Total liabilities Total liabilities + market value of the equity The market value of the equity is calculated by multiplying the number of shares of common stock outstanding times the market price per share. 3. The market value of SciTronics' equity was $175.000.000 at December 31, 2008, The total debt ratio at market was A fourth ratio that relates the level of debt to economic value and performance is the times interest camed ratio. This ratio relates camings before interest and takes a measure of profitability and of long-term viability to the interest expense-a measure of the level of debt. Earnings before interest and taxes Interest expense 4. SciTronics' camings before interest and taxes operating income) were 2008 and its interest charges were __Its times interesteamed was times. This represented an improvement/deterioration from the 2005 level of times A fifth and final leverage ratio is the number of days of payables. This ratio measures the average number of days that the company is taking to pay its suppliers of raw materials and components. It is calculated by dividing annual purchases by 365 days to determine average purchases per day Annual purchases 365 days Accounts payable are then divided by average purchases per day: Accounts payable Average purchases per day to determine the number of days od purchases that are still unpaid. It is often difficult to determine the purchases of a firm. Instead, the income statement shows the cost of goods sold, a figure that includes not only raw materials but also labor and overhead. Thus one can often gain only a rough idea as to whether a firm is becoming more or less dependent on its suppliers for finance. This can be done by tracking the pattern over time of accounts payable as a percent of cost of goods sold