Question

Presented below are selected ratios for four firms. Rosemont is a distiller, Adler is a jewelry retailer, Menzel is an airline, and Gallagher is a hotel chain.

Required:
1. Explain why the long-term debt-to-equity ratio is so much higher for the airline and hotel chain than it is for the distiller and jewelry retailer.
2. Explain why the turnover ratios vary so much among the four firms.
3. Explain why the return on equity for the airline and hotel chain is higher than for the distiller and jewelry retailer when their operating income and net income percentages are considerably smaller.


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  • CreatedSeptember 22, 2015
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