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Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data: ($ in thousands) E-Travel Pricecheck Total assets $ 4,737,156 $ 1,626,224 Total
Two online travel companies, E-Travel and Pricecheck, provide the following selected financial data:
($ in thousands) | E-Travel | Pricecheck | |||||
Total assets | $ | 4,737,156 | $ | 1,626,224 | |||
Total liabilities | 2,454,475 | 468,610 | |||||
Total stockholders equity | 2,282,681 | 1,157,614 | |||||
Sales revenue | $ | 2,555,426 | $ | 1,938,212 | |||
Interest expense | 76,233 | 16,084 | |||||
Tax expense | 138,400 | 39,168 | |||||
Net income | 283,526 | 473,472 | |||||
Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers in thousands of dollars and round ratios to 2 decimal places.)
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 $4, 737, 156 2, 454, 475 2, 282, 681 Pricecheck $1,626, 224 468, 610 1, 157, 614 Sales revenue Interest expense Tax expense Net income $2,555, 426 76,233 138, 400 283, 526 $1,938, 212 16, 084 39,168 473, 472 Required: 1-a. Calculate the debt to equity ratio for E-Travel and Pricecheck. (Enter dollar answers in thousands of dollars and round ratios to 2 decimal places.) Debt to Equity Ratio Total liabilities Total stockholders' equity 2,454,475 2,282,681 E-Travel 1.08 $ Debt to Equity Ratio Total stockholders' equity Total liabilities Pricecheck 1-b. Which company has the higher ratio? E-Travel Pricecheck 2-a. Calculate the times interest earned ratio for E-Travel and Pricecheck. (Enter dollar answers 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? E-Travel PricecheckStep by Step Solution
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