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Company a Has a High Debt to Total Assets Ratio

question 8

Essay

Company A has a high debt to total assets ratio and a high interest coverage ratio. Company B has a low debt to total assets ratio and a high interest coverage ratio. Company C has a high debt to total assets ratio and a low interest coverage ratio. Company D has a low debt to total assets ratio and a low interest coverage ratio.
Instructions
Based solely on the information provided above, which company or companies would you consider loaning money to? Explain your reasoning.


Definitions:

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A label typically used in graphs or charts to describe the variable represented on a particular axis.

Chart Title

The heading or caption provided at the top of a chart that describes its purpose or content.

Table Cell

A single unit in a table where a row and column intersect, capable of containing text, numbers, or images.

Axis Title

A label that describes the purpose or contents of a particular axis on a graph or chart, helping to clarify the data being presented.

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