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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
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 differen countries. Review the following financial statements. (Click the icon to view the financial statements.) Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the current ratios for Ackert, Madden, and Rhodan. (Enter amounts in millions or billions as provided to you in the problem statement. Round the ratios to two decimal places.) = Current ratio Data table \begin{tabular}{lrrr} (Amounts in millions or billions) & Ackert & Madden & \multicolumn{1}{c}{ Rhodan } \\ \hline Income data & & & \\ Total revenues & $9,733 & 77,320 & 136,485 \\ Operating income & 299 & 230 & 5,735 \\ Interest expense & 43 & 28 & 688 \\ Net income & 22 & 20 & 444 \end{tabular} Asset and liability data (Amounts in millions or billions) \begin{tabular}{lrrr|} \hline Total current assets & 429 & 5.236 & 140.844 \\ \hline Long-term assets & 91 & 1.217 & 74,647 \\ Total current liabilities & 217 & 2.247 & 72,600 \end{tabular} \begin{tabular}{lrrr} Long-term assets & 91 & 1,217 & 74,647 \\ \hline Total current liabilities & 217 & 2,247 & 72,600 \\ Long-term liabilities & 67 & 2,270 & 110,567 \\ Common stockholders' equity & 236 & 1,936 & 32,324 \end{tabular} 1. Compare three fictitious companies (Ackert, Madden, and Rhodan) by calculating the following ratios: current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Use year-end figures in place of averages Where needed for calculating the ratios in this exercise. Based on your computed ratio values, which company looks the least risky
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