Table 3 Required Ratio Name Ratio Formula Ratio Threshold Calculated In Threshold Compliance? Debt to Equity Ratio Total liabilities Total equity At or below 2.0 7.91 No Current Ratio Return on Assets Current assets/Current liabilities** Net income/Total assets Greater than 1.0 1.66 Yes At or above 1396 5.93% No Greater than 2.0 7.79 Yes Interest Coverage Ratio Income before income *excluding accounts payable taxes/interest expense *cument liabilities includes estimated current portion of lease liability (12 months PV of lease payments)