Leverage Ratios

Coverage of fixed charges FORMULA

(Profit before taxes + interest charges + lease charges) / (Interest changes + Lease Charges)

Times interest earned FORMULA

(Profit before taxes + interest charges) / Interest changes

Coverage of fixed charges

A measure of the company's ability to meet all of its fixed charge obligations.

Current liabilities to equity FORMULA

Current Liabilities / Shareholders' equity

Times interest earned

Indicates the ability of the company to meet its annual interest costs.

Long-term debt to capital structure FORMULA

Long-term debt / Shareholders' equity

Debt to asset ratio

Measure the extent to which borrow funds have been used to finance the company's assets.

Debt to equity ratio

Measures the funds provides by creditors versus the funds provided by owners.

Long-term debt to capital structure

Measures the long-term comp nets of capital structure.

Current liabilities to equity

Measures the short-term financing portion versus that provided by owners.

Debt to asset ratio FORMULA

Total Debt / Total Assets

Debt to equity ratio FORMULA

Total debt/ Shareholders' equity