Question
ACT5725 Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from CVS Health Corp. for 2014 through 2016 follows
ACT5725
Compute and Interpret Coverage, Liquidity and Solvency Ratios
Selected balance sheet and income statement information from CVS Health Corp. for 2014 through 2016 follows ($ millions).
| Total Current Assets | Total Current Liabilities | EBIT (Operating income) | Interest Expense, Gross | Total Liabilities | Equity | |
|---|---|---|---|---|---|---|
| 2016 | $33,930 | $26,250 | $10,504 | $1,058 | $57,628 | $39,722 |
| 2015 | 32,046 | 23,169 | 9,620 | 838 | 55,234 | 40,091 |
| 2014 | 28,871 | 19,027 | 8,965 | 600 | 36,224 | 40,851 |
a. Compute times interest earned ratio for each year and discuss any trends for each. Round answers to one decimal place.
| Year | TIE Ratio |
|---|---|
| 2016 | Answer
|
| 2015 | Answer
|
| 2014 | Answer
|
b. Compute the current ratio for each year and discuss any trend in liquidity. Round answers to one decimal place.
| Year | Current Ratio | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2016 | Answer
| ||||||||
| 2015 | Answer
| ||||||||
| 2014 Answer
c. Compute the total liabilities-to-equity ratio for each year and discuss any trends for each. Round answers to one decimal place.
|
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Guide To Financial Audit In Life And Health Insurance
Authors: Naser-Eddine Nebbache
1st Edition
6205873397, 978-6205873397
