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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 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 ratios to two decimal places.) Sobeys Debt ratio 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 problem statement. Round the times-interest-earned ratios to two decimal places.) Sobeys Sony Daimler 1 1 Based on your computed ratio values, which company looks the least risky? A. Sony B. Daimler OC. Sobeys OD. They all look fairly similar. = Times-interest-camed ratio = Financial statements Income data (amounts in millions or billions) Sobeys Sony Daimler Total revenues... Operating income Interest expense. Net income $ 13,253 7,863 151,989 341 200 2,081 42 36 920 197 123 3,227 Asset and liability data Total current assets. $2,035 4,569 93,942 Long-term assets 2,604 6,938 96,991 Total current liabilities 1,210 3,177 59,957 Long-term liabilities. 704 4,230 95,920 Shareholders' equity. 2,725 4,100 35,058
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