这类问答题是在二级考试中就会出现吧？

问题如下：

Discuss two financial metrics that can be used to assess a company’s ability to service additional debt in its capital structure.

选项：

解释：

Solution

Leverage ratios and interest coverage ratios are commonly used to determine whether a company can service additional debt. Regarding leverage ratios, a company’s ratio of total debt to total assets measures the proportion of total assets funded by debt capital, and its ratio of total debt to EBITDA provides an estimate of how many years it would take to repay its total debt based on EBITDA (a proxy for operating cash flow). The interest coverage ratio (EBIT to interest expense) measures the number of times a company’s EBIT could cover its interest payments.