Question
selected financial data for two competitors in the construction supply industry are provided as follows: Company A ($ in millions) Total assets Total liabilities Total
selected financial data for two competitors in the construction supply industry are provided as follows:
Company A
($ in millions)
Total assets
Total liabilities
Total stockholders equity
Sales
Interest expense
Income tax expense
Net income
2024
$40,877
21,484
19,393
66,176
676
1, 362
2,661
2023
$41,164
23,387
17,777
Required:
Company B
2024
$33,005
13,936
19,069
47,220
383
11,042
1,783
2023
$32,625
14,570
18, 055
1-a. Calculate the debt to equity ratio for 2024 for both companies.
- b. Which company has the higher ratio?
- a. Calculate the return on assets for 2024 for both companies.
- b. Which company appears more profitable?
- a. Calculate the times interest earned ratio for 2024 for both companies.
3-b. Which company is better able to meet interest payments as they become due?
elected financial data for two competitors in the construction supply industry are provided as follows Required: 1-a. Calculate the debt to equity ratio for 2024 for both companies. 1b. Which company has the higher ratio? 2-a. Calculate the return on assets for 2024 for both companies. 2-b. Which company appears more profitable? 3-a. Calculate the times interest earned ratio for 2024 for both companies. 3-b. Which company is better able to meet interest payments as they become due Step by Step Solution
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Financial Accounting The Cornerstone Of Business Decision Making
Authors: Jay S Rich, Jeff Jones, Linda Ann Myers
5th Edition
0357132696, 978-0357132692
