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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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