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Times Interest Current Ratio Earned 5 times 6 times 7 times Company Debt Ratio Company A Company B Company C 3000 3500 4000 1.75 x
Times Interest Current Ratio Earned 5 times 6 times 7 times Company Debt Ratio Company A Company B Company C 3000 3500 4000 1.75 x 2.00 x 1.85 x Based on the information above: 1. Which company has the best ability to pay its long term debt? 2. Which company has the best ability to pay its current bills? 3. Which company has the highest financial risk? Times Interest Return on Assets Company Company A Company C Based on the information above: Turnover 5 times 6 times 7 times 10% I 2% 9% 4. Which company has the highest profitability? Current Ratio Quick Ratio Inventory Turnover Company 1.65 x 1.50 x 0.90 1.00 Company A Industry Average 8 x Based on the information above: 5. What problem might Company A have
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