Based on the below ratios, how you would consider a construction company? Would you lend money to them? EBITDA margin 2.1% EBIT margin 1.99% ROE 31.26% ROC 12.48% Current Ratio 0.78 Quick Ratio 0.75 Cash ratio 0.18 Debt to Equity 5.95 Debt to total assets 85.6% Total debt / Ebitda 21.1 EBITDA / interest paid 6.5 EBIT / interest paid 3.7
it’s called a E&C company not vice versa
This is how it is called in Businessweek
If we go just by the EBIT/int coverage ratio – > 3x looks pretty decent, but again I need to see how much more debt they can take on. what do others think?