FIN 571 Week 2 Individual Homework ual Homework | Page 3

EBIT to Assets
Effective Tax Rate
Leverage
Ratios

Coverage
Ratios
Turnover
Ratios

12.2
28.8

4.9
29.1

22.3
27.2

14.5
26.3

15.3
21.5

24.4
36.1

7.9
31.5

Financial Leverage

3.9

5.9

2

5.9

2.2

1.4

15

Assets/Equity
%
Debt/Assets
Debt/Equity
Long-Term Debt/Assets
Long-Term Debt/Equity

135.01
0.26
0.35
0.12
0.16

178.62 260.57
0.37 0.52
0.65 1.35
0.05 0.13
0.09 0.33

204.37 222
0.42 0.47
0.85 1.05
0.13 0.22
0.26 0.48

120.66
0.17
0.21
0.01
0.01

246.58
0.57
1.39
0.36
0.89

Times Interest Earned

71.73

18.76  

18.84 41.98  

2.27

A/R Turnover

8.29

4.93

5.59

5.94

5.39

6.77

5.37

Asset Turnover
Capital Turnover
Plant Turnover
Inventory Turnover

0.32
0.43
2.2
4.16

0.39
0.69
2.47
2.91

0.55
1.44
1.59
2.93

0.74
1.51
3.13
4.09

0.58
1.29
1.92
2.56

0.73
0.88
7.12
2.88

0.6
1.48
2.82
2.66

Days 43.4

73

64.4

60.6

66.7

53.2

67

Days 86.5

123.9 122.7 88

140.6 125.1 135.2

0.09

0.03

0.12

0.59
175.16
647.75
0.15
0.08
0.03

0.22 0.47
32.3 104.27
370.39 355.79
0.16 0.35
0.09 0.06
0.03 0.03

Efficiency
Collection Period
Measures
Inventory Stockpile
Asset
Income/Assets
Utilization
Income/Plant
Income/Employee
Sales/Employee
Plant/Assets
Depreciation/Sales
Depreciation/Assets

RANKING

%
%

$K
$K

0.16

0.1

0.44 0.39
38.13 55.55
272.58 272.94
0.24 0.3
0.06 0.04
0.05 0.03

0.16

0.04

1.53
111.16
518.04
0.1
0.03
0.02

0.2
11.36
162.9
0.21
0.95
0.03

1. Number of Periods.How long will it take for $400 to grow to $1,000 at the interest rate
specified?
2. 4 percent
3. 8 percent
4. 16 percent