Companies that operate in different industries may have very different financial ratio values. These differences may...

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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 different countries. Review the following financial statements. (Click the icon to view the financial statements.) Read the requirement. Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the current ratios for Albertson, Millstone, and Raleigh. (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 (Amounts in millions or billions) Albertson Millstone Raleigh Income data Total revenues Operating income Interest expense Net income $ 9,723 7,311 136,384 291 222 5,584 41 26 655 21 16 441 Asset and liability data (Amounts in millions or billions) Total current assets 434 4,832 126,700 Long-term assets 96 573 68,297 Total current liabilities 247 2,237 72,400 Long-term liabilities 97 2,303 110,897 Common stockholders' equity 186 865 11,700 - Requirement 1. Compare three fictitious companies (Albertson, Millstone, and Raleigh) 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? 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 different countries. Review the following financial statements. (Click the icon to view the financial statements.) Read the requirement. Begin by computing the ratios. Start by selecting the formula for the current ratio. Then calculate the current ratios for Albertson, Millstone, and Raleigh. (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 (Amounts in millions or billions) Albertson Millstone Raleigh Income data Total revenues Operating income Interest expense Net income $ 9,723 7,311 136,384 291 222 5,584 41 26 655 21 16 441 Asset and liability data (Amounts in millions or billions) Total current assets 434 4,832 126,700 Long-term assets 96 573 68,297 Total current liabilities 247 2,237 72,400 Long-term liabilities 97 2,303 110,897 Common stockholders' equity 186 865 11,700 - Requirement 1. Compare three fictitious companies (Albertson, Millstone, and Raleigh) 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?