Data taken from the financial statements of Arctagon, a steel manufacturer headquartered in the Netherlands, appear below (amounts in millions of euros). Arctagon acquired other steel companies during the threeyear period.

a. Compute the long-term debt ratio and the debt€“equity ratio at the end of each year.
b. Compute the cash flow from operations to total liabilities ratio and the interest coverage ratio for 2011 through 2013.
c. How has the long-term liquidity risk of Arctagon changed over this three-yearperiod?

Transcribed Image Text:

For the Yea 2013 2012 2011 Net Income Before Interest Expense and Income Taxes. . 11,538 6,624 6,828 4,160 6,034 8,539 676 895 404 On December 31 2013 2012 2011 2010 17,448 11,264 Total Liabilities. . .. 52,749 38,662 53,114 31,947 7,760 4,301