E9-46B. (Learning Objective 4: Measuring the times-interest-earned ratio) Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries.

Compare three leading companies on their current ratio, debt ratio, and times-interestearned ratio. Compute three ratios for Company F, Company L, and Company V.

Based on your computed ratio values, which company looks the least risky?

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A1 1 2 (Amounts in millions or billions) Income data 3 Total revenues 4 Operating income 5 Interest expense 6 Net income Company F Company L Company V $ 9,723 * 7,312 136,377 294 43 25 2222 5,627 29 687 12 443 7 8 Asset and liability data 9 (Amounts in millions or billions) 10 Total current assets 435 5,422 147,398 11 Long-term assets 135 740 61,173 12 Total current liabilities 13 Long-term liabilities 14 Shareholders' equity 15 227 2,248 72,620 109 2,320 110,927 234 1,594 25,024