An analyst gathers the following information (in $ millions) about three companies:
| | Company 1 | Company 2 | Company 3 |
|---------------------|-----------|-----------|-----------|
| Total Debt | 1,125 | 1,360 | 1,562 |
| EBITDA | 590 | 680 | 750 |
| Interest Expense | 71 | 60 | 63 |
Which company's leverage contributes most adversely to its credit risk? | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
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An analyst gathers the following information (in $ millions) about three companies:
Company 1
Company 2
Company 3
Total Debt
1,125
1,360
1,562
EBITDA
590
680
750
Interest Expense
71
60
63
Which company's leverage contributes most adversely to its credit risk?