Companies that operate in different industries may have very different financial ratio values. These differences may grow
Question:
Compare three leading companies on their current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Compute the ratios for Company B, Company N, and Company V.
Based on your computed ratio values, which company looks the leastrisky?
Transcribed Image Text:
(Amounts in millions or billions) Company B Company N Company V 97,320 136,146 5,646 655 450 Income data Total revenues Operating income Interest expense Net income 59,732 295 41 230 27 17 Assets and liability data (Amounts in millions or billions) Total current assets Long-term assets Total current liabilities Long-term liabilities Stockholders' equity 5,321 144,720 65,828 72,000 2,277 111,177 27.371 429 81 227 592 2,217 206 1,419
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 56% (16 reviews)
Amounts in millions or billions Company Company Company Ratio B N ...View the full answer
Answered By
Ajeet Singh
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
5.00+
4+ Reviews
24+ Question Solved
Related Book For
Financial Accounting
ISBN: 9780135433065
7th Canadian Edition
Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin
Question Posted:
Students also viewed these Accounting questions
-
The debt-to-equity and times interest earned ratios were discussed in this chapter. Which is a better indicator of a companys ability to meet its required interest payment? Explain.
-
Public companies that operate in different businesses or segments are required to report operating results for those segments. This requirement makes it possible to evaluate the performance of...
-
The debt-to-equity and times interest earned ratios were discussed in this chapter. Which is better indicator of a company's ability to meet its required interest payment? Explain.
-
What is a derivative contract? Give an example. How are derivatives related to risk management?
-
Is this a share-based payment transaction? Should Zebra Ltd recognise the acquisition cost as an asset or an expense? Explain.
-
The Excel file Restaurant Sales provides sample information on lunch, dinner, and delivery sales for a local Italian restaurant. Develop 95% prediction intervals for the daily dollar sales of each of...
-
8. Determined that it is probable that a lawsuit involving a claim against a department will result in a settlement of at least $50,000. However, it is not expected that any payments will be required...
-
Discuss how technology and the emerging role of digital and social media are impacting the role of brand managers. What types of skills are needed to be a successful brand manager today? What can...
-
need help with these. please help! Starfax, Inc., manufactures a small part that is widely used in various electronic products such as home computers. Results for the first three years of operations...
-
Consider a closed economy. The aggregate consumption function is given by the following expression: C = 3 + 0.6Y 1. Express the aggregate demand YD of this economy as a function of G and I. 2. Plot...
-
Footnote 10 of Abercrombie and Fitch Co.s financial statements for fiscal year 2010 (January 29, 2011) contains the following information: At January 29, 2011, the Company was committed to...
-
Prime Nation Financial Services is considering two plans for raising $600,000 to expand operations. Plan A is to borrow at 6%, and plan B is to issue 125,000 shares of common stock at $4.80 per...
-
In Exercises determine whether the statement is true or false. If it is false, explain why or give an example that shows it is false. If |r| < 1, then arn n=1 a 1-r
-
Consider a system consisting of a colloidal particle of radius and charge Q-+20e (e is the charge of an electron) stationary in the center of a spherical cavity of radius R=5. Its counterions have...
-
Use the Empirical Rule to determine the percentage of candies with weights between 0.7 and 0.98 gram. Hint: x=0.84.
-
A sample of 16 items provides a sample standard deviation of 9.5. Test the following hypotheses using a = .05. Ho: 0250 2 Ha > 50 a. Calculate the value of the test statistic (to 2 decimals). 27.08...
-
During May, Darling Company incurred factory overhead costs as follows: indirect materials, $1,170; indirect labor, $2,000; utilities cost, $1,270; and factory depreciation, $5,850. Journalize the...
-
Practice 1 Let f(0) = cos(0). For each interval in the table below, determine the characteristics of f(e) Positive or negative Increasing or decreasing Concave up or concave down Let g(0) = 00
-
(a) How might regression techniques be used for purposes of prediction? (b) If you use regression models for this purpose, what are the likely sources of error in your forecast? Assume that you have...
-
What are some of the various ways to implement an awareness program?
-
The Finishing Department of Bailey and Watson, Inc., the last department in the manufacturing process, incurred production costs of $180,000 during the month of June. If the June 1 balance in...
-
Sue and Sam Ristic own Club Fab. From its inception, Club Fab has sold merchandise on either a cash or credit basis, but no credit cards have been accepted. During the past several months, the...
-
Stropes Corporation is a recently formed business selling the Worlds Best Doormat. The corporation is selling doormats faster than Stropes can make them. It has been selling the product on a credit...
-
As its year-end approaches, it appears that Lopez Corporations net income will increase 10% this year. The president of Lopez Corporation, nervous that the stockholders might expect the company to...
-
You are evaluating a new project for the firm you work for, a publicly listed firm. The firm typically finances new projects using the same mix of financing as in its capital structure, but this...
-
state, "The subscription price during a rights offering is normally r; lower ; lower r; higher er; higher than the rights-on price and
-
Arnold inc. is considering a proposal to manufacture high end protein bars used as food supplements by body builders. The project requires an upfront investment into equipment of $1.4 million. This...
Study smarter with the SolutionInn App