Pledged Assets to Secured Liabilities-measures the protection provided the secured creditors by the pledge of assets. Book value of pledged assets divided by book value of secured liabilities. Times interest Earned-reflects the riskiness of repayments with interest to creditors. Income before interest and income taxes divided by interest expense. Profitability-refers to a company's ability to generate an adequate return on invested capital.
Return is judged by assessing earnings relative to the level and sources of financing.
Net income divided by net sales. Return on Total Assets-expresses net income as a percentage of average total assets. Return on Common Stockholder's Equity-measures the success of a company in earning net income for its owners. Net income less preferred dividends divided by average common stockholder's equity. Market Market measures are useful when analyzing corporations having publicly traded stock Market measures use stock price in their computation.