[财务管理.英文第十三版.ch6shen.ppt

Coverage Ratios Interest Coverage/ Times Interest Earned EBIT Interest Expense For Aldine December 31, 2003 Indicates a firm’s ability to cover interest charges. Income Statement Ratios Coverage Ratios $210 $59 = 3.56 Evaluation only. Created with Aspose.Slides for .NET 3.5 Client Profile 5.2.0.0. Copyright 2004-2011 Aspose Pty Ltd. Coverage Ratio Comparisons Aldine Industry 3.56 5.19 4.35 5.02 10.30 4.66 Year 2003 2002 2001 Interest Coverage Ratio Aldine has below average interest coverage relative to the industry average. Evaluation only. Created with Aspose.Slides for .NET 3.5 Client Profile 5.2.0.0. Copyright 2004-2011 Aspose Pty Ltd. Coverage Ratio -- Trend Analysis Comparison Evaluation only. Created with Aspose.Slides for .NET 3.5 Client Profile 5.2.0.0. Copyright 2004-2011 Aspose Pty Ltd. Summary of the Coverage Trend Analysis Note, we know that debt levels are in line with the industry averages. This indicates that low earnings (EBIT) may be a potential problem for Aldine. The interest coverage ratio for Aldine has been falling since 2001. It has been below industry averages for the past two years. Evaluation only. Created with Aspose.Slides for .NET 3.5 Client Profile 5.2.0.0. Copyright 2004-2011 Aspose Pty Ltd. Activity Ratios Receivable Turnover Annual Net Credit Sales Receivables For Aldine December 31, 2003 Indicates quality of receivables and how successful the firm is in its collections. Income Statement / Balance Sheet Ratios Activity Ratios $2,211 $394 = 5.61 (Assume all sales are credit sales.) Evaluation only. Created with Aspose.Slides for .NET 3.5 Client Profile 5.2.0.0. Copyright 2004-2011 Aspose Pty Ltd. Activity Ratios Avg Collection Period Days in the Year Receivable Turnover For Aldine December 31, 2003 Average number of days that receivables are outstanding. (or RT in days) Income Statement / Balance Sheet Ratios Activity Ratios 365 5.61 = 65 days Evaluation only. Created with Aspose.Slid