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Question 5.8 ABC Company and XYZ Company are competitors in the manufacturing industry. Using the ratios and financial information have been compiled for these two

Question 5.8 ABC Company and XYZ Company are competitors in the manufacturing industry. Using the ratios and financial information have been compiled for these two companies for the recent year as provided on page 252 in your text, you will answer multiple-choice questions regarding the two companies' liquidity, activity, leverage, profitability and P/E ratios.

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5.8. ABC Company and XYZ Company are competitors in the manufacturing industry. The following ratios and financial information have been compiled for these two companies for the most recent year: Financial ratios ABC XYZ 0.92 0.61 1.51 1.20 0.85 2,520 0.35 995 5.48 4.75 2.82 6.20 4.00 3.55 3.62 1.10 2.49 1.10 Liquidity Current times) Quick (times) Cash flow liquidity (times) Cash flow from operations in millions of $) Activity Accounts receivable turnover (times) Inventory turnover (times) Payables turnover (times) Fixed asset turnover (times) Total asset turnover (times) Leverage Debt ratio (%) Times interest earned (times) Cash interest coverage (times) Cash flow adequacy (times) Profitability Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Cash flow margin (%) Return on assets (%) Return on equity (%) Cash return on assets (%) Earnings per share Closing stock price 76.02 12.31 9.89 0.43 51.21 17.28 30.19 1.35 43.08 16.23 11.26 6.98 9.77 40.86 6.87 43.11 8.84 4.80 12.59 4.63 10.23 12.54 1.19 $35 per share 4.59 $41 per share Question 5.8 ABC Company and XYZ Company are competitors in the manufacturing industry. Using the ratios and financial information have been compiled for these two companies for the recent year as provided on page 252 in your text, you will answer multiple-choice questions regarding the two companies' liquidity, activity, leverage, profitability and P/E ratios. 5.8. ABC Company and XYZ Company are competitors in the manufacturing industry. The following ratios and financial information have been compiled for these two companies for the most recent year: Financial ratios ABC XYZ 0.92 0.61 1.51 1.20 0.85 2,520 0.35 995 5.48 4.75 2.82 6.20 4.00 3.55 3.62 1.10 2.49 1.10 Liquidity Current times) Quick (times) Cash flow liquidity (times) Cash flow from operations in millions of $) Activity Accounts receivable turnover (times) Inventory turnover (times) Payables turnover (times) Fixed asset turnover (times) Total asset turnover (times) Leverage Debt ratio (%) Times interest earned (times) Cash interest coverage (times) Cash flow adequacy (times) Profitability Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Cash flow margin (%) Return on assets (%) Return on equity (%) Cash return on assets (%) Earnings per share Closing stock price 76.02 12.31 9.89 0.43 51.21 17.28 30.19 1.35 43.08 16.23 11.26 6.98 9.77 40.86 6.87 43.11 8.84 4.80 12.59 4.63 10.23 12.54 1.19 $35 per share 4.59 $41 per share Question 5.8 ABC Company and XYZ Company are competitors in the manufacturing industry. Using the ratios and financial information have been compiled for these two companies for the recent year as provided on page 252 in your text, you will answer multiple-choice questions regarding the two companies' liquidity, activity, leverage, profitability and P/E ratios

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