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
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. E: (Click the icon to view the financial statements.) Required Compare three leading companies on their current ratio, debt ratio, and times-interest-Barned 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? (Challenge) 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.) Debt ratio 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 problem statement. Round the times-interest-earned ratios to two decimal places.) = Times-interest-eamed ratio Sebeys Sony Daimler Based on your computed ratio values, which company looks the least risky? O A. Sobeys OB. Sony O C. Daimler O D . They all look fairly similar Financial statements (amounts in millions or billions) Sobeys Sony Daimler Income data Total revenues.............................. Operating income ................... Interest expense........... Net income .............. $13,753 335 - 36 200 8,392 1 94 30 130 152,489 2,075 914 3 ,230 ....... Asset and liability data Total current assets. ............... Long-term assets .............. Total current liabilities .............. Long-term liabilities................ Shareholders' equity.................. $ 1,435 2,904 1,210 754 2,375 3,977 7,238 3,172 4,292 3,751 93,308 97,291 59,957 95,970 34,672 Print Print Done Done 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 Sony - 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 Interest expense Long-term liabilities Daimler Operating income Next, select the formula for th Shareholders' equity Total assets Total current assets Sobeys Total current liabilities Total liabilities Total revenues Daimler Debt ratio Sony 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.) = Times-interest-earned ratio Sobeys Sony Daimler 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 Sony ind Daimler. (Enter amounts in millions or billions as provided to you in the problem statement. Round the debt ratios to two decimal places.) Sobeys Interest expense Long-term liabilities Daimler Operating income Next, select the formula for the debt ratio. Then calculate the de Shareholders' equity Total assets Total current assets Sobeys Total current liabilities i Total liabilities Total revenues Daimler II Debt ratio II I Sony II 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.) = Times-interest-earned ratio Sobeys Sony Daimler Based on your computed ratio values, which company looks the least risky
