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XYZ Ltd wants to assess its solvency using solvency ratios. Calculate the following solvency ratios based on the given information: Debt Ratio Debt-to-Equity Ratio Interest

XYZ Ltd wants to assess its solvency using solvency ratios. Calculate the following solvency ratios based on the given information:

  • Debt Ratio
  • Debt-to-Equity Ratio
  • Interest Coverage Ratio

Given the following information:

  • Total Assets: $500,000
  • Total Liabilities: $300,000
  • Equity: $200,000
  • EBIT: $100,000
  • Interest Expense: $20,000

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