Question
Company A Company B Company C Days sales in receivables 8.3 days 46.9 days 80.3 days Days sales in inventory 2.3 days 45.8 days 95.8
Company A Company B Company C
Days sales in receivables 8.3 days 46.9 days 80.3 days
Days sales in inventory 2.3 days 45.8 days 95.8 days
Debt to assets ratio 34.8% 77.5% 62.3%
Times interest earned 14.5 times 7.8 times 4.5 times
Gross profit margin 37% 70% 20%
Price/earnings ratio 15 3 18
2) Which company is best able to meet its interest obligations?
A B C
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
