Leverage and Coverage Ratios
(The data for interest coverage are in I-Metrix's liquidity ratios section. The others listed in this table are in the leverage ratios section.)
|
|
Most Recent Fiscal Year
|
Fiscal Year
(-1)
|
Fiscal Year
(-2)
|
Fiscal Year
(-3)
|
|
Debt/Equity
|
0.6223
|
0.6893
|
1.1880
|
0.1094
|
|
Debt/Assets
|
0.7906
|
0.7045
|
0.7070
|
0.4382
|
|
Interest Expense/Long term Debt
|
0.0501
|
0.0981
|
0.0324
|
0:no LTD
|
|
Times Interest Earned (TIE)
|
12.2922
|
9.1947
|
18.8934
|
34.7779
|
|
Interest Coverage
|
12.2922
|
9.1947
|
18.8934
|
34.7779
|
- What trends, if any, are apparent in these ratios?
- Are these favorable or unfavorable to the shareholders?
- Are these favorable or unfavorable to the debt holders?
- The debt/equity ratio from I-Metrix is based on book values. If you were to calculate the ratio on the basis of market values, would this ratio tend to be higher or lower than on the basis of book values? Why?