Discuss the major causes of any changes in the ratios


Discussion Post

Using the same company and annual reports that you chose for your Discussion Post, Reading and Using the Annual Report Case Study,

a) Calculate the debt-to-equity ratio and times interest earned ratio for the company for the latest two years. Obtain the industry averages for these ratios and any other pertinent information from IBISWorld, and then analyze the results.

b) Discuss what each of these ratios tells you about the company's use of debt and how it compares to the industry average.

c) Identify the major causes of any changes in these ratios and discuss your assessment of the company based on these changes.

d) If you were a lender, discuss whether you would you be willing to lend money to the company based on its use of debt.

The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Corporate Finance: Discuss the major causes of any changes in the ratios
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