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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
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. (Click the icon to view the financial statements.) Requirement Compare three leading companies on their current ratio, debt ratio, and times-interest-earned ratio. Compute three ratios for Sobeys (the Canadian grocery chain), Sony (the Japanese electronics manufacturer), and Daimler (the German auto company). Based on your computed ratio values, which company looks the least risky? Begin by computing the ratios. Start by selecting the formula for the current ratio. Then, calculate the current ratios for Sobeys, Sony, and Daimler. (Enter amounts in millions or billions as provided to you in the problem statement. Round the current ratios to two decimal places.) Current ratio Sobeys Sony Daimler Financial statements = Next, select the formula for the debt ratio. Then, calculate the debt ratios for Sobeys, Sony, and Daimler. (Enter amounts in millions or billions as provided to you in the problem statement. Round the debt ra Debt ratio (amounts in millions or billions) Sobeys Sony Daimler Income data Sobeys Sony = Daimler Next, select the formula for the times-interest-earned ratio. Then, calculate the times-interest-earned ratios for Sobeys, Sony, and Daimler. (Enter amounts in millions or billions as provided to you in the proble Times-interest-earned ratio Total revenues.. Operating income Interest expense. $13,053 7,690 151,789 332 191 2,072 35 29 913 Net income 198 122 3,228 Asset and liability data Total current assets. $ 1,235 3,777 93,123 Sobeys Long-term assets 2,504 6,838 96,891 Sony Daimler Based on your computed ratio values, which company looks the least risky? A. Sobeys B. Daimler C. Sony D. They all look fairly similar. Total current liabilities 1,300 3,271 60,047 Long-term liabilities. 714 4,246 95,930 Shareholders' equity. 1,725 3,098 34,037 Print Done
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