business finance debt utilization ratios

Company is Foot Locker

  1. Name of Company and Ticker Symbol: Company name, ticker symbol
  2. 10-K Report: Paste the direct URL to the company’s most recent 10-K Report
  3. Company Website: Paste the URL to the company’s website
  4. Industry name and NAICS Code: Provide the name and NAICS code associated with the Industry Average data.
  5. Debt Utilization Ratios: Follow the formatting in the example below to present the data. See this sample eStatement Studies document for help in finding the industry average data needed for this assignment.
    20XX 20XX 20XX* Industry Average**
    Debt Ratio (Total Liabilities / Total Assets)
    Equity Ratio (Total Equity / Total Assets)
    Times Interest Earned (EBIT / Interest Exp)

    *most recent year
    ** There will be a single industry average for the debt and equity ratios. List all 3 industry average figures for the Time Interest Earned ratio.

  6. Evaluation: Interpret each of the ratios. Review the Financial Ratios Guidelines document for direction. Do you see any red flags? Does the company make greater use of debt financing or equity financing? Does the company have too much debt? How safely can the company cover its interest expense?
 
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