Indicate the meaning of the ratios computed, is the busiiness performing good or bad? RATIOS20212020201920182017Key RatiosDebt-to-Equity RatioDebt Ratio15.277436.4745 -118.43527.13355.20630.93500.96820.99770.87430.8372Long-term debt to EquityNon-current assets to Net worthCapitalization ratioCurrent liability ratio8.110419.8482 -70.69434.07143.200110.571725.9883 -80.34185.55984.59960.89020.95201.01430.80280.76190.46910.45580.40310.42930.3853Liquidity RaioCurrent ratioQuick ratio (acid-test ratio)0.80480.70280.80360.84890.80690.74200.64030.72240.79050.7404Cash ratio0.26230.17730.21520.35150.3002

The financial ratios are an important tool to analyze the financial position of the company. The…

RATIOS 2021 2020 2019 2018 2017 Key Ratios Debt-to-Equity Ratio 15.2774 36.4745 -118.4352 7.1335 5.2063 Debt Ratio 0.9350 0.9682 0.9977 0.8743 0.8372 Long-term debt to Equity Non-current assets to Net worth 8.1104 19.8482 -70.6943 4.0714 3.2001 10.5717 25.9883 -80.3418 5.5598 4.5996 Capitalization ratio Current liability ratio 0.8902 0.9520 1.0143 0.8028 0.7619 0.4691 0.4558 0.4031 0.4293 0.3853 Liquidity Raio Current ratio 0.8048 0.7028 0.8036 0.8489 0.8069 Quick ratio (acid-test ratio) 0.7420 0.6403 0.7224 0.7905 0.7404 Cash ratio 0.2623 0.1773 0.2152 0.3515 0.3002

RATIOS 2021 2020 2019 2018 2017 Key Ratios Debt-to-Equity Ratio 15.2774 36.4745 -118.4352 7.1335 5.2063 Debt Ratio 0.9350 0.9682 0.9977 0.8743 0.8372 Long-term debt to Equity Non-current assets to Net worth 8.1104 19.8482 -70.6943 4.0714 3.2001 10.5717 25.9883 -80.3418 5.5598 4.5996 Capitalization ratio Current liability ratio 0.8902 0.9520 1.0143 0.8028 0.7619 0.4691 0.4558 0.4031 0.4293 0.3853 Liquidity Raio Current ratio 0.8048 0.7028 0.8036 0.8489 0.8069 Quick ratio (acid-test ratio) 0.7420 0.6403 0.7224 0.7905 0.7404 Cash ratio 0.2623 0.1773 0.2152 0.3515 0.3002

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter9: Projecting Financial Statements

Section: Chapter Questions

Problem 3bM

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Calculate the Weighted Average Cost of Capital (WACC) Cost of Equity = 11.02% Cost of Debt = 5.35% Debt-to-Equity Ratio = 15.52%
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