Selected financial data for Stanley Black & Decker, Inc. and Snap-On Tools for 2009 are presented here (in millions).

Instructions

(a) For each company, compute the following ratios.
(1) Current ratio. (8) Return on assets.
(2) Receivables turnover. (9) Return on common stockholders’ equity.
(3) Average collection period. (10) Debt to total assets.
(4) Inventory turnover. (11) Times interest earned.
(5) Days in inventory. (12) Current cash debt coverage.
(6) Profit margin. (13) Cash debt coverage.
(7) Asset turnover. (14) Free cash flow.

(b) Compare the liquidity, solvency, and profitability of the two companies.

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Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (loss) Income tax expense Net income Stanley Black & Decker Snap-On Tools Income Statement Data for Year $3,737.1 2,228.8 1,208.2 63.7 42.4 54.5 $ 224.3 $2,420.8 1,345.7 824.4 47.7 (6.1) 62.7 $ 134.2 Current assets Property, plant, and equipment (net) Other assets Balance Sheet Data (End of Year) $1,411.9 575.9 $1,676.1 347.8 2,781.3 1,423.5 Total assets $4,769.1 $3,447.4 Current liabilities $1,192.0 $ 739.9 Long-term debt 1,591.0 1,417.5 Total stockholders' equity 1,986.1 1,290.0 Total liabilities and stockholders' equity $4,769.1 $3,447.4 Total assets Total stockholders' equity Current liabilities Total liabilities Average receivables (net) Average inventory Net cash provided by operating activities Capital expenditures Cash dividends Beginning-of-Year Balances $4,866.6 $2,710.3 1,706.3 1,186.5 1,193.2 547.5 3,160.3 1,523.8 Other Data $ 604.9 $ 612.7 440.5 316.9 539.4 347.1 72.9 64.4 103.6 69.0