The debt-to-assets ratio is 0.68:1.
15.65 times the interest earned ratio.
Ratio of total assets to debt (debt-to-total capital ratio) The debt-to-total-assets ratio reveals how much of a firm is owned by creditors (those it has borrowed money from) and how much of its assets are owned by shareholders.
Debt to Assets ratio:
Current liabilities=15360
Long term liabilities=16860
Total Debts=Current liabilities+ Long term liabilities
=15360+ 16860=32220
Total Debts=47580
Debt to Assets ratio= Total Debts/Total Debts
=0.68:1
Times Interest earned ratio:
Net income=20480
Tax expense=3904
Interest expense=1664
Net income before interest and tax
=(Net income+ Tax expense+ Interest expense)
=(20480+ 3904+ 1664)
=26048
Interest expense=1664
Times Interest earned ratio
=Net income before interest and tax/Interest expense
=26048/1664
=15.65 times
The debt-to-assets ratio is 0.68:1.
15.65 times the interest earned ratio.
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