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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).

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