Jalbert Plumbing Products Ltd. reported the following data in 2016 (in millions):
2016
Net operating revenues................................ $ 31.8
Operating expenses.................................... 26.7
Operating income....................................... 5.1
Nonoperating items:
Interest expense......................................... (0.6)
Other...................................................... (0.6)
Net income............................................... $ 3.9
Total assets............................................... $200.0
Total stockholders' equity.............................. 74.0
Compute Jalbert's leverage ratio, debt ratio, and times-interest-earned ratio, and write a sentence to explain what those ratio values mean. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this exercise. Would you be willing to lend Jalbert $1 million? State your reason.