Use them in a ratio analysis that compares the firms' financial leverage and profitability.

a$.$ Calculate the following debt and coverage ratios for the two companies. Discuss their financial risk and ability to cover the costs in relation to each other.

$(1)$ Debt ratio

$(2)$ Times interest earned ratio

b$.$ Calculate the following profitability ratios for the two companies. Discuss their profitability relative to each other.

$(1)$ Operating profit margin

$(2)$ Net profit margin

$(3)$ Return on total assets

$(4)$ Return on common equity

a$.$ The debt ratio for Pelican is $\%.($Round to one decimal place.$)$

The debt ratio for Timberland is $\%.($Round to one decimal place.$)$

The times interest earned ratio for Pelican is $.($Round to one decimal place.$)$

The times interest earned ratio for Timberland is $.($Round to one decimal place.$)$

Discuss their financial risk and ability to cover the costs in relation to each other. $($Select all the answers that apply.$)$

cover its interest expense.

able to cover its interest expense.

Data table

$($Click the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$