Question: Dell's default risk appears to have improved over the years, as indicated by the positive times interest earned ratios in 2020, 2021, 2022, and 2023.
Dell's default risk appears to have improved over the years, as indicated by the positive times interest earned ratios in 2020, 2021, 2022, and 2023. A positive times interest earned ratio suggests that Dell's earnings are sufficient to cover its interest expenses, reducing the risk of default on debt payments. However, the negative times interest earned ratio in 2019 indicates a period of financial strain where Dell's earnings were insufficient to cover its interest obligations, suggesting a higher default risk during that year
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