Calculating and interpreting long-term liquidity ratios Data taken from the financial statements of Arcelor Mittal, a steel manufacturer headquartered in the Netherlands, appear below amounts in millions of cubs). Arcelor Mittal acquired other steel companies during the three-year 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 2005 through 2007.

c. How has the long-term liquidity risk of Arcelor Mittal changed over this three-yearperiod?

For the Year Net Income Before Interest Expense and Income Taxes... 11,538 Cash Flow from Operations... Interest Expense..... 2007 2006 2005 6,624 6,828 4,160 6,034 8,539 676 895 404 On December 31 Long-Term Debt ... Total Liabilities Total Shareholders' Equity 2006 16,416 2005 2004 2007 15,105 6,760 17,448 11,264 1,206 53,114 31,947 52,749 38,662 7,760 4,301