Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

compute and interpret coverage liquidity and solvency ratios selected balance sheet and income statement information from Amazon for 2016 through 2018 follows a. compute profitability

image text in transcribed

image text in transcribed

image text in transcribed

compute and interpret coverage liquidity and solvency ratios

selected balance sheet and income statement information from Amazon for 2016 through 2018 follows

a. compute profitability measures RNOA and ROE for 2018 and 2017. in which year are the measure stronger? round your answers to one decimal place b.compute coverage metric times interest earned in cash from the operating activities to total debt for 2018 and 2017. round your answers to two decimal places c. determine liquidity for the company of for 2018 and 2017 by computing the current ratio and quick ratio. around your answers to two decimal places d.compute the total liabilities to equity ratio and the total debt to equity ratio for 2018 and 2017. round your answers to two decimal places.

Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information from Amazon for 2016 through 2018 follows. $ millions 2018 2017 2016 Net operating profit after tax (NOPAT) $11,527 $3,383 $2,684 Net income 10,577 3,185 2.490 Operating profit 13,042 4,311 4,395 Interest expense 1,587 950 542 Cash from operating activities 32,259 19,283 18,063 Current assets 78,856 63,207 48,070 Current liabilities 76,598 64,829 49,074 Cash and cash equivalents 33,338 21,548 20,301 Marketable securities 9,975 10.987 6,979 Total debt 26,314 27.712 8,617 Assets 170,780 137,876 87.572 Liabilities 133,391 116,033 71.811 Equity 48,775 31,034 21,599 Net operating assets (NOA) 28,889 24,042 1.118 a. Compute profitability measures RNOA and ROE for 2018 and 2017. In which year are the measures stronger? Round answers to one decimal place (ex: 0.2345 = 23.5%). 2018 2017 RNOA 0 % 096 ROE 0 % 0 % b. Compute coverage metrics Times interest earned and cash from operating activities to total debt for 2018 and 2017. Round answers to two decimal places. 2018 2017 0 0 Times interest earned Cash from operating activities to total debt 0 0 c. Determine liquidity for the company for 2018 and 2017 by computing the current ratio and quick ratio. Round answers to two decimal places. 2018 2017 Current ratio 0 Quick ratio 0 0 d. Compute the Total liabilities-to-equity ratio and the Total debt to equity ratio for 2018 and 2017 Round answers to two decimal places. 2018 2017 0 0 Total liabilities-to-equity Total debt to equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Economics An Applications Approach

Authors: Robert Carbaugh

8th Edition

1138652199, 978-1138652194

More Books

Students also viewed these Finance questions

Question

Explain why you agree or disagree with this statement.

Answered: 1 week ago