Debt Management (Solvency) Ratios Debt ratio = Total liabilities / Total assets Year Numerator Denominator Debt Ratio (%

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Debt Management (Solvency) Ratios Debt ratio = Total liabilities
/ Total assets Year Numerator Denominator Debt Ratio (%) 20Y2 20Y1
Competitor: 50.9% Industry Average: 42.0% Times interest earned
(TIE) = Income before interest and taxes (IBIT) / Interest expense
(Note: To find income before interest and taxes, take net income
and add back the taxes and interest expense.) Year Numerator
Denominator TIE 20Y2 20Y1 Competitor: 3.3 Industry Average: 6.5
Debt Management Evaluation: Should either of these ratios or the
change in a ratio warrant concern for the managers of Stargel or
the shareholders?