Question
The information below is excerpted from the financial statements of two companies. Fill in the missing information (10 items), and then use this information to
The information below is excerpted from the financial statements of two companies. Fill in the missing information (10 items), and then use this information to answer questions 9, 10 and 11.
(in $ million) | Company A | Company B |
Net revenues | 63,897 | 146,212 |
Net income | 1,019 | 4,117 |
Total current assets | 16,433 | 8,029 |
Total assets | 24,433 | 55,219 |
Total current liabilities | 14,712 | 11,887 |
Total liabilities | (1) | (2) |
Total stockholders equity | 2,917 | 9,049 |
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Asset Turnover Ratio | 2.62 | (3) |
Current Ratio | 1.12 | (4) |
Debt to Assets Ratio | (5) | 0.84 |
Debt to Equity Ratio | (6) | 5.10 |
Assets to Equity Ratio | (7) | 6.10 |
Return on Assets | (8) | 7.46% |
Profit Margin | 1.59% | (9) |
Return on Equity | 34.93% | (10) |
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Q9 Which company creates higher value for its shareholders? Explain using appropriate ratio(s).
Q10 Which company is less liquid (riskier in the short-term)? Explain using appropriate ratio(s).
Q11 Which company is more leveraged? Explain using appropriate ratio(s).
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