Prior to beginning work on this discussion forum, read Chapter 9 in the course textbook, Using Financial Accounting.
Using the same company and annual reports that you chose for your Week 1 – Discussion Forum, Reading and Using the Annual Report Case Study,
Calculate the debt-to-equity ratio and times interest earned ratio for the company for the latest two years. Obtain the industry averages for these ratios and any other pertinent information from the Mergent OnlineLinks to an external site. database, available through the UAGC Library, or use another outside resource of your choice, and then analyze the results. Be sure to show your calculations.
If needed, review the How to Find Industry Ratios and Averages Using Mergent OnlineLinks to an external site. tutorial on how to use the Mergent OnlineLinks to an external site. database.
Discuss what each of these ratios tells you about the company’s use of debt and how it compares to the industry average.
Identify the major causes of any changes in these ratios and discuss your assessment of the company based on these changes.
If you were a lender, discuss whether you would you be willing to lend money to the company based on its use of debt.
Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly or credible resource, in addition to the text. Cite your sources in APA Style with in-text citations and a reference list. The Writing Center’s APA: Citing Within Your PaperLinks to an external site. and APA: Formatting Your References ListLinks to an external site. provide instructions and examples.