Purchase Solution

Stockbridge Debt management ratios

Not what you're looking for?

Ask Custom Question

1. Stockbridge Industries has a total asset turnover ratio of 4.1x and net annual sales of $49.2 million. If Stockbridge has $6 million of total debt on its balance sheet, what is the firm's debt ratio?

2. Stockbridge pays 10% annual interest on its outstanding debt. If the firm's total operating costs (including depreciation and amortizatin) equal $37 million, what is the firm's times-interest-earned (TIE) ratio?

Purchase this Solution
Solution Summary

The response provides steps to compute the Stockbridge Debt management ratios

Solution Preview

Debt management ratios

1. Stockbridge Industries has a total asset turnover ratio of 4.1 and net annual sales of $49.2 million. If Stockbridge has $6 million of total debt on its balance ...

Purchase this Solution
Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Introduction to Finance

This quiz test introductory finance topics.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Operations Management

This quiz tests a student's knowledge about Operations Management

View More Free Quizzes
Related BrainMass Solutions

  • What are the different categories of ratios

    The different categories of ratios are Liquidity ratios, Asset Management ratios, Debt Management ratios, and Profitability ratios.

  • Four financial ratios

    Solvency ratios or Debt management ratios Debt Management ratios measure the utilization of financial leverage by the firm and, indirectly, the level of risk the firm faces.

  • Financial analysis

    The ratios that I might use in my analysis are liquidity ratios, asset management ratios, debt management ratios, and profitability ratios.

  • Financial ratios and a comparison of the ratios

    /university/ratios/debt/ratio5.asp Please see the attached file.

  • What is ratio analysis?

    Ratios that are most valuable to top managers in General Electric would be the debt management ratios. These ratios are debt ratio, times-interest-earned ratio, EBITDA coverage ratio, which they show the company's use of debt financing.

  • Calculations and Ratios of a Firm

    REFERENCES Pandey, I M 1998, 'Financial Statements Analysis', Financial Management, pp. 517-558 http://www.investopedia.com/university/ratios/default.asp http://www.investopedia.com/university/ratios/debt/default.asp What calculations and ratios

  • Ratio Analysis McDonalds and Burger King years 2010 & 2011

    Asset management -Total Asset turnover -Average collection period (ACP) -Comments on asset management 3. Debt management -Debt ratio -Times interest earned -Comments on debt management 4.

  • Liquidity Ratios, Profitability Ratios, Asset Management Ratio

    Includes liquidity ratios, profitability ratios, asset management ratios, debt management and explanations of results.

  • Financial budgets and ratios

    Critically discuss the following ratios measure: Profitability ratios, Liquidity ratios, Debt Performance ratios, and Asset Management ratios. Ratios help us in understanding the performance of the organization.

View More Related Solutions