Below is a company's debt ratios. Are you concerned? If so, why? 2017 2016 2015 Debt...
Below is a company's debt ratios. Are you concerned? If so, why?
|
2017 |
2016 |
2015 |
|
|
Debt |
1.41 |
1.17 |
1.07 |
No, the firm's financial flexibility is decreasing
Yes, the firm's financial flexibility is increasing
Yes, the firm's financial flexibility is decreasing
No, the firm's financial flexibility is increasing
Homework Answers
Yes, I am concerned because the firm's financial flexibility is decreasing :
The increasing debt ratio shows that debt is increasing as a percentage of assets
This means that the company will be able to borrow less in the future, as its debt levels are already high
Also, the company has higher obligation of periodic interest payments as its debt has increased
Due to these reasons, the company's financial flexibility is decreasing
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Below is a company's debt ratios. Are you concerned? If so,
why?
2017
2016
2015
Debt...
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