Year Numerator Denominator 20Y2 20Y1 Competitor: 50.9% Debt Ratio (%) Industry Average: 42.0% Year 20Y2 20Y1 Times interest earned (TIE) = Income before interest and taxes (IBIT)/ Interest expense (Note: To find income before interest and taxes, take net income and add back the taxes and interest expense.) Numerator Denominator Competitor: 3.3 TIE Industry Average: 6.5 Debt Management Evaluation: Should either of these ratios or the change in a ratio warrant concern for the managers of Stargel or the shareholders