Number of times interest earned ratio. See Exhibit 9 of the text. Define the concept of leverage. Use of debt in place of equity. Explain the limitations of ratio analysis.
Ratios are only indicators of problems.
Compared figures must be related. Comparing properties can be misleading. One ratio cannot tell the whole story. Return to the top of the page Copyright 2000 by Don St. Hilaire. This represents the official syllabus for Hrt 374, and is subject to change without notice to anyone but the students currently enrolled in the class.