Big Rock Brewery Inc. is a regional producer of craft beers and cider. The compa
ID: 2451257 • Letter: B
Question
Big Rock Brewery Inc. is a regional producer of craft beers and cider. The company’s products are sold in nine provinces and territories in Canada. Exhibits 10-17A to C contain extracts from Big Rock’s 2013 annual report.
Calculate the ratios that the management of Big Rock Brewery have indicated they monitor in relation to their management of capital. (Must calculate EBITDA, EBITDA to long-term debt ratio, and EBITDA to interest, debt repayments and dividends ratio (the interest, debt, repayments and dividends ratio is one ratio) for both 2012 and 2013).
Explanation / Answer
EBIDTA =Earning before interest tax depreciation and amortization
EBIDTA to long term debt ratio=EBIDTA/Long term debts
EBIDTA to interest,debt repayments and dividend =EBIDTA/interest+debt repayments and dividend
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