Please review each of the following ratios for ABC Company and analyze the long-term solvency. Please provide
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Question:
Please review each of the following ratios for ABC Company and analyze the long-term solvency. Please provide your analysis and explain the difference between the cash interest coverage and times interest earned ratios.
2018 | 2019 | |
Times Interest Earned | (2.0) | (2.4) |
Cash Interest coverage | 3.5 | 3.1 |
Fixed Charge coverage | (.3) | (1.2) |
Cash flow adequacy | 0.1 | 0.3 |
Related Book For
Principles of Risk Management and Insurance
ISBN: 978-0132992916
12th edition
Authors: George E. Rejda, Michael McNamara
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