Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

write anaylsis for this 3 Solvency ratios result in comparsion of the two companies. and also please write wich company has a better Solvency ratios

write anaylsis for this 3 Solvency ratios
result in comparsion of the two companies.
and also please write wich company has a
better Solvency ratios
image text in transcribed
image text in transcribed
image text in transcribed
Interest Coverage Ratio: (Net Income / Interest Expense) DBS ,000,000 2020 2019 2018 2017 2016 Net Income 5,707 680 542 765 716 Interest Expense 112 142 136 134 125 Interest Coverage Ratio 50.96 4.79 3.99 5.71 5.73 DHL ,000,000 2020 2019 2018 2017 2016 Net Income 1,485 1,762 1,063 2,853 2,781 Interest Expense 406 369 688 411 359 Interest Coverage Ratio 3.66 4.78 1.55 6.94 7.75 Fixed Coverage Ratio: (Net Income+ Interest portion of Lease / Fixed Charges) 2020 2019 2018 2017 DBS ,000,000 Net Income+ Interest portion of Lease 2016 5,819 822 678 899 841 Fixed Charges 241 241 241 241 241 Fixed Coverage Ratio 24.15 3.41 2.81 3.73 3.49 2020 2019 2018 2017 2016 DHL ,000,000 Net Income+ Interest portion of Lease 1,950 2,227 1,528 3,318 3,246 Fixed Charges 154 154 154 154 154 Fixed Coverage Ratio 12.66 14.46 9.92 21.55 21.08 Formula: (Net Income + Interest portion of Lease) DBS ,000,000 2020 2019 2018 2017 2016 Net Income 5,707 680 542 765 716 112 142 136 134 125 Interest portion of Lease Net Income+ Interest portion of Lease 5,819 822 678 899 841 DHL ,000,000 2020 2019 2018 2017 2016 Net Income 1,485 1,762 1,063 2,853 2,781 465 465 465 465 465 Interest portion of Lease Net Income+ Interest portion of Lease 1,950 2,227 1,5283,318 3,246

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Michelle Hanlon, Robert Magee, Glenn Pfeiffer, Thomas Dyckman

5th Edition

1618531654, 9781618531650

More Books

Students also viewed these Accounting questions

Question

Excel caculation on cascade mental health clinic

Answered: 1 week ago