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Use them in a ratio analysis that compares the firms' financial leverage and profitability. a . Calculate the following debt and coverage ratios for the
Use them in a ratio analysis that compares the firms' financial leverage and profitability. a Calculate the following debt and coverage ratios for the two companies. Discuss their financial risk and ability to cover the costs in relation to each other. Debt ratio Times interest eamed ratio b Calculate the following profitability ratios for the two companies. Discuss their profitability relative to each other. Operating profit margin Net profit margin Return on total assets Return on common equity a The debt ratio for Pelican is Round to one decimal place. The debt ratio for Timberland is Round to one decimal place Data table Click on the icon located on the topnght comer of the data table below in order to copy its contents into a spreadsheet tableItemPelican Paper, Inc.,Timberland Forest, Inc.Total assets,$$
Use them in a ratio analysis that compares the firms' financial leverage and profitability.
a Calculate the following debt and coverage ratios for the two companies. Discuss their financial risk and ability to cover the costs in relation to each other.
Debt ratio
Times interest eamed ratio
b Calculate the following profitability ratios for the two companies. Discuss their profitability relative to each other.
Operating profit margin
Net profit margin
Return on total assets
Return on common equity
a The debt ratio for Pelican is Round to one decimal place.
The debt ratio for Timberland is Round to one decimal place
Data table
Click on the icon located on the topnght comer of the data table below in order to copy its contents into a spreadsheet
tableItemPelican Paper, Inc.,Timberland Forest, Inc.Total assets,$$
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