The Following Ratios Have Been Calculated for Wholesale Appliances, Inc

question 33

Essay

The following ratios have been calculated for Wholesale Appliances, Inc.Analyze the capital structure and long-term solvency of Wholesale Appliances, Inc.
2015------2014
$\begin{array}{ll}\text { Debt ratio (\%) } & 77.8 &90.3\\\text { Long-term debt to total capital (\%) } & 29.8&66.1\\Times interest earned (times)&(2.0)&(2.8)\\\text { Cash interest coverage (times) }&4.6&4.1\\\text { Fixed charge coverage (times) }&(0.4)&(1.0)\\\text { Cash flow adequacy (times) }&0.2&0.3\end{array}$

---

Definitions:

Achieving Consensus

The process of working towards unanimity in decision-making where all members support the outcome.

Team Leadership Skill

The ability to guide, inspire, and coordinate a group of individuals towards achieving common objectives.

Majority Rule

A decision-making principle where the option that receives the most votes from a group is selected.

Decision Consensus

A group decision-making outcome where all members agree on the chosen course of action, ensuring alignment and commitment among participants.