National Semiconductor Corp claims to be “. . . one of the world’s leading semiconductor companies focused on analog and mixed-signal integrated circuits and sub-systems, particularly in the area of power management.” Texas Instruments, Inc., claims to be “. . . the world’s fourth largest semiconductor company in 2009 as measured by revenue . . .” The following data were taken from the companies’ 2010 annual reports. Dollar amounts are in millions.
Required a. Compute the current ratio for each company. b. Compute the debt to assets ratio for each company. c. Based on the ratios computed in Requirements a and b, which company had the better liquidity in 2010? d. Based on the ratios computed in Requirements a and b, which company had the better solvency in2010?