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Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) Total assets Total liabilities Total stockholders' equity E-Travel Pricecheck
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) Total assets Total liabilities Total stockholders' equity E-Travel Pricecheck $ 5,487,156 $1,756,224 2,954,475 473,610 2,532,681 1,282,614 Sales revenue Interest expense Tax expense Net income $2,805,426 $ 2,188,212 81,233 21,084 148,400 44,168 293,526 483,472 Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers using amounts given in thousands of dollars and round ratios to 2 decimal places.) Debt to Equity Ratio E-Travel Debt to Equity Ratio Pricecheck - 1-b. Which company has the higher ratio? O E-Travel O Pricecheck 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Enter dollar answers using amounts given in thousands of dollars and round ratios to 1 decimal place.) Times Interest Earned Ratio E-Travel Times Interest Earned Ratio Pricecheck 2-b. Which company is better able to meet interest payments as they become due? O E-Travel O Pricecheck
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