The following data were taken from the 2010 financial statements of tire manufacturers Compagnie Générale des Établissements Michelin (Michelin) and The Goodyear Tire & Rubber Company:

Where available, industry averages are shown in parentheses next to each ratio below.
(a) Calculate the following liquidity ratios for each company and discuss the relative liquidity of the two companies and the tire manufacturing industry:
1. Current ratio (1.6:1)
2. Cash current debt coverage (n/a)
3. Receivables turnover (6.4 times)
4. Inventory turnover (6.1 times)
(b) Calculate the following solvency ratios for each company and discuss the relative solvency of the two companies and of the tire manufacturing industry:
1. Debt to total assets (34.2%)
2. Times interest earned (1.8 times)
3. Cash total debt coverage (n/a)
4. Free cash flow (n/a)
(c) Calculate the following profitability ratios for each company and discuss the relative profitability of the two companies and the tire manufacturing industry:
1. Return on common shareholders' equity (-3.1%)
2. Return on assets (-0.5%)
3. Profit margin (-0.4%)
4. Asset turnover (1.3 times)
5. Gross profit margin (17.3%)
(d) Identify the key differences between each company and their industry. What factors might be causing the differences you found?

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(in euro millions) in USD millions) Average current liabilities 2 Average total liabilities Average total common shareholders equity Net cash provided by operating activities Net capital expenditures