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Calculate the current ratio and debt to assets ratio

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Reference no: EM13921334

Sonic Corporation began business in 1953. In 2010 it was operating 3,572 drive in hamburger restaurants throughout the United States and Mexico. The following data were taken from the company's 2010 annual report. All dollar amounts are in thousands.

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Required: 

a. Calculate the EBIT for each year. 

b. Calculate the times interest earned ratio for each year. 

c. Calculate the current ratio and debt to assets ratio for each year. 

d. Did the company's level of financial risk increase or decrease from 2009 to 2010?Explain. 

Reference no: EM13921334

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