All the figures are in millions Please write down the formulas used to answer the question and use excel to answer. Calculate: debt ratio and times interest earned ratio. LLC Current Asset Current Liabilities Total Liabilities Total Assets 2016 5,857.9 8,824.3 12,978.2 18,592.9 2017 6,261.3 10,757.7 14,687.7 20,854.2 2018 6,314.2 6,588.0 10,549.4 16,963.6 2019 5,756 6,287 10,821 17,178 2020 5,977 5,653 10,816 17,748 2021 4,950 5,983 10,049 17,000 BKW Net Cash Provided by operating activities Operating Income Before Tax Finance Costs Cash and cash eqiv & Accounts receivables 2016 853.0 862.8 - 126.2 1,008.4 + 2,785.0 2017 146.0 1,007.0 - 108. 6 1,249.2 + 2,749.2 2018 72.8 1,066.2 - 88.0 1,177.1 + 2,670.2 2019 60 620 - 142 1,290 + 2,050 2020 137 - 536 - 165 1, 1 1 1 + 1,667 2021 468 295 - 146 1,662 + 1,741
All the figures are in millions
Please write down the formulas used to answer the question and use excel to answer.
Calculate: debt ratio and times interest earned ratio.
|
LLC |
Current Asset |
Current Liabilities |
Total Liabilities |
Total Assets |
|
2016 |
5,857.9 |
8,824.3 |
12,978.2 |
18,592.9 |
|
2017 |
6,261.3 |
10,757.7 |
14,687.7 |
20,854.2 |
|
2018 |
6,314.2 |
6,588.0 |
10,549.4 |
16,963.6 |
|
2019 |
5,756 |
6,287 |
10,821 |
17,178 |
|
2020 |
5,977 |
5,653 |
10,816 |
17,748 |
|
2021 |
4,950 |
5,983 |
10,049 |
17,000 |
|
BKW |
Net Cash Provided by operating activities |
Operating Income Before Tax |
Finance Costs |
Cash and cash eqiv & |
|
2016 |
853.0 |
862.8 |
- 126.2 |
1,008.4 + 2,785.0 |
|
2017 |
146.0 |
1,007.0 |
- 108. 6 |
1,249.2 + 2,749.2 |
|
2018 |
72.8 |
1,066.2 |
- 88.0 |
1,177.1 + 2,670.2 |
|
2019 |
60 |
620 |
- 142 |
1,290 + 2,050 |
|
2020 |
137 |
- 536 |
- 165 |
1, 1 1 1 + 1,667 |
|
2021 |
468 |
295 |
- 146 |
1,662 + 1,741 |
Ratio analysis is a tool that establishes a relationship between different items. It is used to evaluate the financial performance of the company by using values shown in the income statement, balance sheet, statement of cash flows, and so on.
The debt ratio is a financial ratio that calculates the percentage of a company's assets that are financed by debt. If the debt ratio is greater than one, it indicates that a significant portion of a company's assets is funded by debt, implying that the company has more liabilities than assets and vice versa.
Times interest earned ratio of a company indicates its ability to pay its debts. A higher times interest earned ratio indicates that a company has enough cash after paying off its debts to continue investing in the business, and vice-versa.
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