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Exercise 9-20A Calculate and analyze ratios (LO9-8) Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel Pricecheck
Exercise 9-20A Calculate and analyze ratios (LO9-8) Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel Pricecheck Total assets $4,887, 156 $1,652, 224 Total liabilities 2,554,475 469,610 Total stockholders' equity 2,332,681 1,182,614 Sales revenue Interest expense Tax expense Net income $2,605,426 77,233 140,400 285, 526 $1,988,212 17,084 40,168 475,472 Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers in thousands of dollars and round ratios to 2 decimal places.) Debt to Equity Ratio E-Travel Debt to Equity Ratio Pricecheck 1-b. Which company has the higher ratio? O E-Travel Pricecheck 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Enter dollar answers in thousands of dollars and round ratios to 1 decimal place.) Times Interest Earned Ratio E-Travel Times Interest Earned Ratio Pricecheck 2-b. Which company is better able to meet interest payments as they become due? O E-Travel O Pricecheck
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