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Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial
Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions Cash and equivalents Short-term investments Accounts receivable Current assets Current liabilities HAL SLB $2,008 $1,433 1,344 5,025 7,566 11,151 15,731 4,610 12,947 Total liabilities Total equity 16,438 33,921 9,162 35,123 Earnings before interest and tax (EBIT) 2,368 2,928 Interest expense, gross 554 537 a. Compute the following measures for both companies. Note: Round your final answers to two decimal places (for example, enter 6.78 for 6.77555). 1. Current ratio 2. Quick ratio 3. Times interest earned 4. Liabilities-to-equity HAL SLB 2.42 1.22 0 0 0 0 1.79 0.97 b. Which company appears more liquid? c. Which company appears more solvent?
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