Evensen Plumbing Products Ltd. reported the following data in 2017 (in millions):
_________________________________________________________ 2017
Net operating revenues........................................................................ $ 29.1
Operating expenses................................................................................... 25.0
Operating income........................................................................................ 4.1
Nonoperating items:
Interest expense......................................................................................... (1.1)
Other......................................................................................................... (0.2)
Net income............................................................................................... $ 2.8
Total assets........................................................................................... $100.0
Total shareholders' equity........................................................................ 40.0
Compute Evensen's leverage ratio, debt ratio, and times-interest-earned ratio, and write a sentence to explain what those ratio values mean. Would you be willing to lend Evensen $1 million? State your reason.