Selected financial data for two intense competitors in a recent year follow (amounts in millions): Required a.
Question:
Selected financial data for two intense competitors in a recent year follow (amounts in millions):
Required
a. For each company, calculate the following ratios:
i. Average collection period for receivables
ii. Days to sell inventory
iii. Current ratio
iv. Net debt as a percentage of total capitalization
v. Interest coverage (depreciation expense was $410 for Eonline and $260 for Paperky)
vi. Return on assets
vii. Return on equity
viii. Cash flows to total liabilities
ix. Gross margin
x. Profit margin
b. Compare the financial position and performance of the two companies, and comment on their relative strengths and weaknesses.
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Related Book For
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
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