Question
Using the annual financial statement for Qualcomm Inc. (QCOM) from Yahoo! Finance (https://finance.yahoo.com/), answer the following questions: a. Based on the current ratios of QCOM
Using the annual financial statement for Qualcomm Inc. (QCOM) from Yahoo! Finance (https://finance.yahoo.com/), answer the following questions:
a. Based on the current ratios of QCOM in the fiscal year 2020 and 2021, how has the firm's liquidity changed between 2020 and 2021?
b. Based on EBIT/Interest ratios of QCOM in the fiscal year 2020 and 2021, how has the firm's credit risk changed between 2020 and 2021?
c. Compute the net profit margins of QCOM in the fiscal year 2020 and 2021, respectively.
d. Compute the returns on equity (ROE's) of QCOM in the fiscal year 2020 and 2021, respectively.
e. Compare your answers in part (c) and (d), and using the DuPont Identity, explain what changed the ROE of QCOM between 2020 and 2021.
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