Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help. Question 4 Not yet answered Marked out of 2.00 V Flag question Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger

please help.

image text in transcribed
Question 4 Not yet answered Marked out of 2.00 V Flag question Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger compete in the oil eld services sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $mi|lions HAL SLB Cash and equivalents $2,008 $1,433 Short-term investments - 1,344 Accounts receivable 5,286 7,960 Current assets 11,151 15,731 Current liabilities 4,850 13,621 Total liabilities 16,438 33,921 Total equity 9,639 36,952 Earnings before interest and tax (EBIT) 2,492 3,081 Interest expense, gross 554 537 3. 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. Timesinterest earned 4. Liabilities-to-equity b. Which company appears more liquid? HAL c A c. Which company appears more solvent? SLB v

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_2

Step: 3

blur-text-image_3

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

Accounting Information Systems

Authors: George H Bodnar, William S Hopwood

10th Edition

013609712X, 978-0136097129

More Books

Students also viewed these Accounting questions

Question

The relevance of the information to the interpreter

Answered: 1 week ago