Share
Explore BrainMass

Debt-to-Equity Ratio for Phoenix Company

1. calculate the Debt-to-Equity ratio for Phoenix Company for all five years and also calculate the Debt-to-Equity ratio applicable to Phoenix's industry sector (Industry Average)

2. Secondly, comment on the long-term debt-paying ability of this company based on the information provided. Identify items that give you concerns about this company and its financial strengths/weaknesses.

See attached for data

Attachments

Solution Preview

Debt to equity ratio= Debt/Equity

Equity= Assets-Debt

Debt ratio= Debt/Assets

Hence Equity=100%-Debt ratio

See ...

Solution Summary

Solution helps in calculating the Debt-to-Equity ratio for Phoenix Company for all five years

$2.19