Capital structure-long-term solvency of wholesale appliances

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The following ratios have been calculated for Wholesale Appliances, Inc. Analyze the capital structure and long-term solvency of Wholesale Appliances, Inc.

                                                                                2015                   2016

Debt ratio (%)                                                         77.8                   90.3

Long-term debt to total capital (%)                         29.8                    66.1     

Times interest earned (times)                               (2.0)                    (2.8)

Cash interest coverage (times)                              4.6                      4.1

Fixed charge coverage (times)                             (0.4)                   (1.0)

Cash flow adequacy (times)                                  0.2                     0.3

Reference no: EM131924404

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