Question
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows. ($ millions)
Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows.
($ millions) | 2004 | 2006 |
---|---|---|
Cash | $ 1,416.73 | $ 1,403.36 |
Accounts receivable | 1,097.16 | 735.30 |
Current assets | 3,838.56 | 3,293.33 |
Current liabilities | 3,285.39 | 6,057.95 |
Long-term debt | 16,940.81 | 3,561.63 |
Short-term debt | 1,033.96 | 4,568.83 |
Total liabilities | 22,808.42 | 25,773.17 |
Interest expense | 1,516.90 | 1,288.29 |
Capital expenditures | 1,545.48 | 211.50 |
Equity | 4,587.67 | (7,152.90) |
Cash from operations | 188.89 | 185.98 |
Earnings before interest and taxes | 1,554.84 | 1,927.84 |
(a) Compute the following liquidity, solvency and coverage ratios for both years. (Round your answers to two decimal places.)
2006 current ratio =
2004 current ratio =
2006 quick ratio =
2004 quick ratio =
2006 liabilities-to-equity =
2004 liabilities-to-equity =
2006 total debt-to-equity =
2004 total debt-to-equity =
2006 times interest earned =
2004 times interest earned =
2006 cash from operations to total debt =
2004 cash from operations to total debt =
2006 free operating cash flow to total debt =
2004 free operating cash flow to total debt =
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