Sonic Corporation began business in 1953. In 2013 it was operating 3,522 drive-in hamburger restaurants throughout the United States and Mexico. The following data were taken from the company’s 2013 annual report. All dollar amounts are in thousands.
a. Calculate the EBIT for each year.
b. Calculate the times interest earned ratio for each year.
c. Calculate the current ratio and debt to assets ratio for each year.
d. Did the company’s level of financial risk increase or decrease from 2012 to 2013? Explain.