Explore BrainMass

Explore BrainMass

    Trend in debt usage

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

    See attached file.

    Based on the financial growth ratios of Anheuser Busch data attached in this post, please answer the following questions:

    a. What has been the trend in debt usage by the company over the past 5 years?
    b. What has been the trend in "asset turnover" over the past 5 years?
    c. What has been the trend in "accounts receivable days" over the past 5 years?
    d. What has been the trend in "return on total equity" over the past 5 years?
    e. How would you characterize the performance of Anheuser Busch over the past 5 years?

    © BrainMass Inc. brainmass.com October 2, 2020, 12:41 am ad1c9bdddf
    https://brainmass.com/business/debt-ratio/trend-debt-usage-340601

    Attachments

    Solution Preview

    Based on the financial growth ratios of Anheuser Busch data attached in this post, please answer the following questions:

    a. What has been the trend in debt usage by the company over the past 5 years?
    Debt ratio measures the long term solvency of the organization. Lower debt equity ratio indicates lower financial risk. For this we will see ratios such as Total debt % of Capital and Debt as a % of Equity. The company's debt ratios have increased indicating that the organization's ...

    Solution Summary

    Response helps in discussing trend in debt usage

    $2.19

    ADVERTISEMENT