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    kakeeya's Avatar
    kakeeya Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 19, 2009, 02:19 PM
    Looking at Finance Statements.where do I find?
    I have the income statement, balance sheet & Cash Flow sheet of a major corporation.

    I need to figure the following:

    Book Debt–Equity Ratio
    Market Debt–Equity Ratio
    Interest Coverage Ratio (EBIT 4 Interest Expense)

    1st I need the right formula's. Looking online, there seems to be a different formula on every page, and even when I find the right formula, I don't know what numbers to take from the financials to plug into the formula's

    Please help.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Jul 20, 2009, 10:23 PM

    One difficulty with ratios is that they can be done differently, so it depends on the source. If you were given these equations in your text or from the instructor, that is what you need to be using. If not, then there's tons of them here:
    Investopedia.com: Financial Ratio Tutorial
    This site even shows some of the alternatives. (I don't, however, know how you can get a market debt-equity ratio.)

    You might want to include the equations with your work so the instructor can see what equation you are using. (Since you could get a different answer if you use a different equation.)

    State specifically what you can't find on those statements.
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