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  • Total Equity To Asset Ratio: Total Equity

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    dua fatima
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    The document contains financial ratio analyses for a company from 2014-2016. It analyzes the total equity to asset ratio, showing equity financing was 43% of assets in 2016, and the coverage ratio, measuring the company's ability to meet interest payments, which increased to 14.89 times in 2016, indicating improved financial performance and reduced risk of bankruptcy compared to prior years.

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    Original Title

    Financial Ratios (1)

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    The document contains financial ratio analyses for a company from 2014-2016. It analyzes the total equity to asset ratio, showing equity financing was 43% of assets in 2016, and the coverage ratio, measuring the company's ability to meet interest payments, which increased to 14.89 times in 2016, indicating improved financial performance and reduced risk of bankruptcy compared to prior years.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views3 pages

    Total Equity To Asset Ratio: Total Equity

    Uploaded by

    dua fatima
    The document contains financial ratio analyses for a company from 2014-2016. It analyzes the total equity to asset ratio, showing equity financing was 43% of assets in 2016, and the coverage ratio, measuring the company's ability to meet interest payments, which increased to 14.89 times in 2016, indicating improved financial performance and reduced risk of bankruptcy compared to prior years.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Total equity to asset

    • Total equity to asset ratio: Total equity


    Total assets 
    Years 2014 2015 2016

    ETAR 0.24 0.19 0.437

    • Company is not performing well because in


    2016 ,43%of assets are financed by equity.
    Coverage ratio

    • Coverage ratio = EBIT


    Interest charges
    Years 2014 2015 2016
    CR 12.20 8.95 14.89
    • This ratio serves as one measure of the firm
    ability to meet its interest payments and thus
    avoid bankruptcy.
    Coverage Ratio
    • this ratio increased in 2016 the firm enhance
    their ability to pay their charges that is 14.89
    times in a year
    • The performance of a firm is better in 2016
    because they increase their capacity to pay
    their interest charges .

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