Leverage Ratios

(4) Debt to asset ratio (formula) = total debt/total asset You do this ratio to find out if a company uses debt, or their money to finance new assets. Source of data for the formula – Balance Sheet for the numerator and the denominator. The result is expressed as a percentage. Ethan Allen 2020- 2019- 2018- Miller Knoll 2020- 2019- 2018- Hooker Furniture 2020- 2019- 2018- 6. Interest coverage ratio (formula) = earnings before interest and taxes (EBIT) divided by interest expenses. Source of data for the formula – Income Statement for the numerator and the denominator. The result is expressed as a decimal. Ethan Allen 2020- 2019- 2018- Miller Knoll 2020- 2019- 2018- Hooker Furniture 2020- 2019- 2018-