Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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)

1 -

2 -

3 -

4 -

5 -

6 -

7 -

8 -

9 -

10 -

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).

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

Project Financing Analyzing And Structuring Projects

Authors: Frank J Fabozzi, Carmel De Nahlik

1st Edition

9811232393, 9789811232398

More Books

Students also viewed these Finance questions

Question

Describe the uses of information gained from job analysis.

Answered: 1 week ago