Please calculate: debt ratio and times interest earned ratio
All the figures are in millions.
Please calculate: debt ratio and times interest earned ratio
Please written down the formulas used and use excel.
|
BKW |
Current Asset |
Current Liabilities |
Total Liabilities |
Total Assets |
|
2016 |
344,168 |
145,498 |
678,726 |
2,517,211 |
|
2017 |
356,979 |
160,215 |
752,063 |
2,719,903 |
|
2018 |
368,473 |
177,655 |
804,059 |
2,875,137 |
|
2019 |
495,024 |
261,798 |
925,626 |
3,092,984 |
|
2020 |
637,416 |
232,882 |
1,428,922 |
3,832,933 |
|
2021 |
579,863 |
268,282 |
1,546,085 |
4,025,832 |
|
BKW |
Net Cash Provided by operating activities |
Operating Income Before Tax |
Finance Costs |
Cash and cash eqiv & |
|
2016 |
148,507 |
121,756 |
- 14,080 |
19,641 + 133,225 |
|
2017 |
115,422 |
256,583 |
- 12,436 |
19,641 + 133,225 |
|
2018 |
170,948 |
244,453 |
- 14,456 |
21,167 + 122,216 |
|
2019 |
123,080 |
314,475 |
- 23,883 |
74,881 + 133,319 |
|
2020 |
75,259 |
417,117 |
- 26,452 |
187,109 & 129,024 |
|
2021 |
139,795 |
347,363 |
- 22,095 |
139,825 & 132,447 |
- Debt Ratio is a solvency ratio which represent the proportion of Debt into the capital structure of the Business Entity.
- If a Firm has higher debt in its capital structure then it is said to be more leveraged.
- Debt Ratio = Total Liabilities / Total Assets.
- Times Interest Earned Ratio is calculated by the Business Entity to check its ability to pay the Interest obligation.
- If a Business Entity has Times Interest Earned Ratio = 9 times, it means it is able to pay Interest 9 times.
- Times Interest Earned Ratio = Profit before Interest and Tax / Interest Expense
Step by step
Solved in 2 steps
