Analyze the capital structure and long-term solvency of Wholesale Appliances, Inc.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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.   The following ratios have been calculated for Wholesale Appliances, Inc. Analyze the capital structure and long-term solvency of Wholesale Appliances, Inc.

 

 

2015

2014

Debt ratio (%)

77.8

90.3

Long-term debt to total capital (%)

29.8

66.1

Times interest earned (times)

(2.0)

(2.8)

Cash interest coverage (times)

4.6

4.1

Fixed charge coverage (times)

(0.4)

(1.0)

Cash flow adequacy (times)

0.2

0.3

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