Viva Airlines had a debt-to-equity ratio of 40 in 2021 and -105 in 2022 Evaluate the trend in this, and briefly discuss how this trend would imply to Viva Airlines' ability to borrow money
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Viva Airlines had a debt-to-equity ratio of 40 in 2021 and -105 in 2022 Evaluate the trend in this, and briefly discuss how this trend would imply to Viva Airlines' ability to borrow money.
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- Halverson's times interest earned ratio was 2.98 in 2022, 2.79 in 2021, and 2.31 in 2020. Which of the following statements about the ratio is correct? Multiple Choice The increasing ratio implies increased long-term debt financing The increasing ratio indicates decreasing levels of debt on which interest is incurred The increasing ratio would be considered by creditors to be an indicator of higher risk The increasing ratio indicates the strategy of pursuing growth by investment in other companies, which has increased debt, but Halverson's profts have not yet increased from those investments.Calculate the 2019 debt ratio, liabilities-to-assets ratio, times-interest-earned ratio, and EBITDA coverage ratios. How does Computron compare with the industry with respect to financial leverage? What can you conclude from these ratios?Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long-term debt. Given its forecast, how much long-term debt will the company have to issue in 2023? Lux Co. has the following balance sheet as of December 31, 2022
- A company has the following items for the fiscal year 2020: Total Equity = 15 million Total Assets = 30 million EBIT = 4 million Interest expense = 1 million Calculate the company’s equity multiplier and interest coverage ratio Write the formula for the following ratios and what each ratio measures: Asset turnover Inventory Turnover and Days Inventory Receivable Collection Period Write down the DuPont framework. How would you explain to your non-MBA non-Finance friend about the DuPont framework and why it is important? A company has the following items for the fiscal year 2020: Revenue = 10 million EBIT = 4 million Net income = 2 million Total Equity = 15 million Total Assets = 30 million Calculate the company’s net profit margin, asset turnover, equity multiplier and ROE Explain cash conversion cycle and why it is important to companies? Is it possible that a company has a negative cash cycle? Is it a good thing or a bad thing? A company has days of inventory 80…How to calculate the cost of debt based on what the company is currently paying for its debt? Considering the fact I want to value a firm's value as of 1st January 2023.Financial statements Net operating revenues Operating expenses Operating income Non-operating items: Interest expense Other Net income Total assets Total shareholders' equity S 2020 33.8 28.9 4.9 (1.2) (0.6) 3.1 $ $ 200.0 78.0 - X
- 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. 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?Solve the following finance question. Q: Compute the following financial ratios by taking/downloading an annual report for the year 2020 of the UNITY FOODS LIMITED. Profitability ratios Liquidity Ratios Debt Ratios Asset activity ratios Market value ratiosReview the incomplete horizontal analysis shown in the image. Assuming that for 2021, the debt-to-equity ratio of the firm is 1:2, and 40% of the liabilities is current, what is the current ratio?
- based on the financial ratio anaylsis of the company below, will the comapny be successful after taking a 500.0 mil dollar loan? or should they sought other forms of financing? Analysis of Financial Data (Table with ratios) Ratio Analysis 2021 Est. 2020 2019 Industry Average Liquidity Ratios Current Ratio (times) 2.34 3.22 3.68 4.2 Quick Ratio (times) 0.91 1.24 1.79 2.1 Asset Management Ratios Average sales/day 10.96 8.22 7.81 9 Inventory Turnover Ratio (times) 4.43 3.74 5.06 9 Days Sales Outstanding (days) 38.32 45.62 40.34 36 Fixed Assets Turnover Ratio (times) 2.12 2.52 3.27 3 Total Asset Turnover Ratio 1.32 1.37 1.69 1.8 Debt Management Ratios Total Debt to Total Assets (%) 59.09 48.58 47.6 40 Times Interest Earned (times) 7.9 6.81 11 6…1. What is AT&T’s current ratio for 2019? 2018? Did it increase or decrease? What does that tell you about AT&T’s ability to pay its short term debts? 2. What was AT&T’s Profit Margin Ratio for 2019? 2018? Did it increase or decrease? Why would AT&T’s investors want to know this? 3. What was AT&T’s Debt Ratio for 2019? 2018? Did it increase or decrease? Why would AT&T’s lenders want to know this?a. Given the ratios for 2020 as follows debtor's collection period=46days stock days on hand=60days creditors payment period =46.34 days Total debt ratio=35% Show how the above were calculated b. Suggest ways to improve the financial ratios.