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# Calculate the debt-to-equity ratio and times interest earned ratio for the company for the latest two years. Obtain the industry averages for these ratios and any other pertinent information...

• Calculate the debt-to-equity ratio and times interest earned ratio for the company for the latest two years. Obtain the industry averages for these ratios and any other pertinent information fromIBISWorld, and then analyze the results.
• Discuss what each of these ratios tells you about the companyâ€™s use of debt and how it compares to the industry average.
• Identify the major causes of any changes in these ratios and discuss your assessment of the company based on these changes.
• If you were a lender, discuss whether you would you be willing to lend money to the company based on its use of debt.
Answered Same Day Jul 17, 2021

## Solution

Neenisha answered on Jul 19 2021
Ratio Calculation
Â
2018
Industry Average
2019
Industry Average
Debt
\$ 41,24,800

\$ 9,88,924

Equity
\$ 93,62,114

\$ 1,05,30,155

DEBT TO EQUITY
0.44
13.80
0.09
7.40

Earnings Before Interest and Tax
\$ 28,40,369

\$ 32,68,121

Interest Expense
\$ 89,242

\$ 1,57,214

TIMES INTEREST EARNED RATIO
31.83
0.20
20.79
0.1
Company Ratio VS Industry Ratios
Debt to Equity Ratio of Adobe Inc is very low at...
SOLUTION.PDF