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    This document discusses various solvency ratios used to evaluate a company's ability to meet its financial obligations. It provides the calculations and results for debt to asset ratio (DAR), debt to equity ratio (DER), times interest earned ratio, and debt service coverage ratio for a particular company. The company has total debt of $2,203,108 with current debt of $806,576 and non-current debt of $1,396,532. Its DAR is 1.67% and DER is 1.90%, indicating low leverage. Its times interest earned ratio of 36 and debt service coverage ratio of 6 also suggest strong interest coverage.

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    Week 1 Solvency Ratios Goto_entree

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    This document discusses various solvency ratios used to evaluate a company's ability to meet its financial obligations. It provides the calculations and results for debt to asset ratio (DAR), debt to equity ratio (DER), times interest earned ratio, and debt service coverage ratio for a particular company. The company has total debt of $2,203,108 with current debt of $806,576 and non-current debt of $1,396,532. Its DAR is 1.67% and DER is 1.90%, indicating low leverage. Its times interest earned ratio of 36 and debt service coverage ratio of 6 also suggest strong interest coverage.

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    4 views17 pages

    Week 1 Solvency Ratios Goto - Entree

    Uploaded by

    insta insta
    This document discusses various solvency ratios used to evaluate a company's ability to meet its financial obligations. It provides the calculations and results for debt to asset ratio (DAR), debt to equity ratio (DER), times interest earned ratio, and debt service coverage ratio for a particular company. The company has total debt of $2,203,108 with current debt of $806,576 and non-current debt of $1,396,532. Its DAR is 1.67% and DER is 1.90%, indicating low leverage. Its times interest earned ratio of 36 and debt service coverage ratio of 6 also suggest strong interest coverage.

    Copyright:

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    of 17

    SOLVENCY RATIOS

    DAR (DEBT TO ASSET RATIO)


    DER (DEBT TO EQUITY RATIO)
    TIMES INTEREST EARNED
    TIMES INTEREST EARNED
    DEBT SERVICE COVERAGE RATIO
    DEBT : ASSET
    DEBT : EQUITY
    INTEREST COVERAGE RATIO
    EBIT : INTEREST EXPENSE
    EBITDA : (INTEREST EXPENSE + SHORT-TERM DEBT)
    139,216,570

    CURRENT DEBT
    SHORT-TERM BORROWINGS -
    BANK LOANS 199,998
    NON-BANK LOANS 412,762
    LEASE LIABILITIES 193,816
    TOTAL 806,576
    DEBT TO EQUITY 1.90%
    NON-CURRENT DEBT DEBT 2,203,108
    BANK LOANS 783,449 EQUITY 116,004,623
    NON-BANK LOANS -
    LEASE LIABILITIES 613,083
    TOTAL 1,396,532
    DEBT TO ASSETS 1.67%
    TOTAL DEBT 2,203,108 DEBT 2,203,108
    ASSETS 132,039,759
    EQUITY 116,004,623

    ASSETS 132,039,759

    DER
    DAR
    INTEREST COVERAGE RATIO - 36
    EBIT - 8,799,730
    INTEREST EXPENSE 243,231
    DEBT SERVICE COVERAGE RATIO (DSCR)
    = EBITDA : (INTEREST EXPENSE + SHORT-TERM DEBT)

    DEBT SERVICE COVERAGE RATIO (DSCR)


    EBITDA
    EBIT
    DEPRECIATION EXPENSE
    DEBT SERVICE COVERAGE RATIO - 6

    EBITDA - 6,762,170
    EBIT - 8,799,730
    DEPRECIATION EXPENSE 2,037,560

    INTEREST EXPENSE 243,231


    CURRENT DEBT 806,576

    CURRENT DEBT
    SHORT-TERM BORROWINGS 199,998
    BANK LOANS 412,762
    NON-BANK LOANS -
    LEASE LIABILITIES 193,816
    TOTAL 806,576
    DEPRECIATION EXPENSE 447,987
    DIRECT COST 416,466
    OPERATING EXPENSE 31,521
    32,461

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