Use Tableau to calculate and display the trends for the debt to equity and times interest...

   

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Use Tableau to calculate and display the trends for the debt to equity and times interest earned ratios for each of the two companies in the period 2018-2021. The average debt to equity ratio and times interest earned ratio for companies in the General Retailers industry sector in a comparable time period are 1.92 and 10.6, respectively. Based upon what you find, answer the following questions: 1. Other things being equal, do both companies appear to have the ability to meet their obligations as measured by the debt to equity ratio? 2. Based solely on the times interest earned ratios, do you reach the same conclusion as in Requirement 1? 3. Is the margin of safety provided to creditors by Discount Goods improving or declining in recent years as measured by the average times interest earned ratio? long term solvency debt to equity ratio Company / Year Big Store Discount Goods 2.0 1.9017 1.9 1.8220 1.8 1.7 1.6783 1.6732 1.6 1.5841 1.4907 1.5 1.4296 1.4119 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 2018 2019 2020 2021 2018 2019 2020 2021 Debt to equity Ratio Long term solvency times interest earned ratio Company Big Store Discount Goods 15 14.50 14 13 12.69 12 10.93 11 10.71 10 5.37 4.96 4.84 4.42 4 3 Times interest earned ratio Use Tableau to calculate and display the trends for the debt to equity and times interest earned ratios for each of the two companies in the period 2018-2021. The average debt to equity ratio and times interest earned ratio for companies in the General Retailers industry sector in a comparable time period are 1.92 and 10.6, respectively. Based upon what you find, answer the following questions: 1. Other things being equal, do both companies appear to have the ability to meet their obligations as measured by the debt to equity ratio? 2. Based solely on the times interest earned ratios, do you reach the same conclusion as in Requirement 1? 3. Is the margin of safety provided to creditors by Discount Goods improving or declining in recent years as measured by the average times interest earned ratio? long term solvency debt to equity ratio Company / Year Big Store Discount Goods 2.0 1.9017 1.9 1.8220 1.8 1.7 1.6783 1.6732 1.6 1.5841 1.4907 1.5 1.4296 1.4119 1.4 1.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 2018 2019 2020 2021 2018 2019 2020 2021 Debt to equity Ratio Long term solvency times interest earned ratio Company Big Store Discount Goods 15 14.50 14 13 12.69 12 10.93 11 10.71 10 5.37 4.96 4.84 4.42 4 3 Times interest earned ratio

Answer rating: 100% (QA)

As there is two companies data is given relevant to debt to equity ratio and interest earned ratio and also given the industry average ratio of both e... View the full answer