Explore BrainMass

Explore BrainMass

    Basic financial analysis

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Just need some help on several questions on basic financial analysis. I have an idea about how to do it but I want to make sure I'm heading in the right direction!

    Questions (also attached Excel file for the data):

    D. Calculate the 2005 debt, times-interest earned and EBITDA coverage ratios. How does this company compare with the industry with respect to financial leverage?

    E. Calculate the 2005 profit margin, basic earning power (BEP), return on assets (ROA) and return on equity (ROE). * what can be said about these ratios- are they desirable??

    © BrainMass Inc. brainmass.com June 3, 2020, 5:51 pm ad1c9bdddf
    https://brainmass.com/business/accounting/basic-financial-analysis-39782

    Attachments

    Solution Preview

    The details are in the attached files.

    D. Calculate the 2005 debt, times-interest earned and EBITDA coverage ratios. How does this company compare with the industry with respect to financial leverage?

    The calculations are in the excel file. All these ratios are near the industry average. Debt ratio is a bit lower, signifying that debt in the total capital is lower ...

    Solution Summary

    The solution explains how to calculate various ratios. Answers are also given in Excel.

    $2.19

    ADVERTISEMENT