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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) Total assets
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) Total assets Total liabilities Total stockholders' equity E-Travel $5,037,156 2,654,475 2,382,681 Pricecheck $1,678,224 470,610 1,207,614 Sales revenue Interest expense Tax expense Net income $2,655,426 78,233 142,400 287,526 $2,038,212 18,084 41,168 477,472 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 O 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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