due at midnight. apa.

Corporate Finance Application
Ratio Analysis: The Smith Company Inc.
1. Debt ratio = Total Liabilities ÷ Total Assets
    2018
    2017
    2016
    2015
    0.76
    0.81
    0.77
    0.77
As on 2018, it is observed that the debt ratio is above the ideal ratio of 0.50. This means that the assets of the company are financed mostly by debt i.e. in the form loans and borrowing from the financial institutes.
2. Debt Equity Ratio = Total Debt ÷ Shareholder’s Equity
Where, Total Debt = Short/ Current long term debt + Long term debt
    2018
    2017
    2016
    2015
    32244000
    37810000
    34452000
    32699000
    1.75
    2.50
    3.27
    2.05
As per the above chart it can be observed that the company’s debt equity ratio is decreasing in 2018 compared to 2017. This signifies that the company is able to service their interests on time and are acquiring less of debt in the form of borrowings and loans.
3. Times Interest Earned = Operating Income or loss ÷ Interest Expenses
    2018
    2017
    2016
    2015
    7.41
    9.20
    8.19
    12.27
The willingness of a company to fulfil its debt obligation...