hese are the three long term solvency for Cisco Inc. Based on these numbers how well is the comany doing? How are the level of debt financing?
hese are the three long term solvency for Cisco Inc. Based on these numbers how well is the comany doing? How are the level of debt financing?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
These are the three long term solvency for Cisco Inc.
Based on these numbers how well is the comany doing? How are the level of debt financing?

Transcribed Image Text:Rounded to: Millions
Current Year:
2018
Prior Year:
2017
Debt ratio:
Total Liabilities
$65,580.0
$63,681.0
Total Assets
$108,784.0
$129,818.0
$65,580.0
$63,681.0
0.60 times
0.49 times
$108,784.0
$129,818.0
Debt to equity ratio:
Total Liabilities
$65,580.0
$63,681.0
Stockholders' Equity
$43,204.0
$66,137.0
$65,580.0
$63,681.0
1.52 times
0.96 times
$43,204.0
$6,137.0
Interest coverage ratio*:
Income Before Income
Taxes + Interest Expense
$12,929.0
($943.0)
$2,678.0
($861.0)
Interest Expense
($943.0)
($861.0)
* This ratio may also be referred to as
$11,986.0
$1,817.0
the "Times-interest-earned" ratio or TIE
-12.71 times
(2.11) times
ratio.
($943.0)
($861.0)
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