Question
Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following
Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios for Year 1 and Year 2. (amounts in millions) Year 1 Year 2 Balance sheet Cash and cash equivalents $6,680 $6,050 Marketable securities 3,794 2,749 Accounts receivable (net) 4,373 3,378 Total current assets 17,801 15,283 Total assets 33,435 31,138 Current liabilities 9,843 6,890 Current portion of long-term debt 1,883 231 Long-term debt 11,463 11,364 Shareholders' equity 10,202 11,208 Income statement Interest expense $310 $349 Net income before taxes 4,718 4,816 Round all answers to two decimal places. Enter the answers for cash and marketable securities to total assets and long-term debt to total assets as percentages (ex: 0.23456 = 23.46%). Year 1 Year 2 Liquidity Cash and marketable securities to total assets % % Quick ratio Current ratio Solvency Long-term debt to total assets % % Long-term debt to shareholders' equity Interest coverage ratio
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