The following ratios are available for Amazon.com, Inc. and Apple Inc. for a recent year: Instructions a.
Question:
The following ratios are available for Amazon.com, Inc. and Apple Inc. for a recent year:
Instructions
a. Which company is more liquid? Explain.
b. Which company is more solvent? Explain.
c. Which company is more profitable? Explain.
Transcribed Image Text:
Liquidity Current ratio Acid-test ratio Receivables turnover Inventory turnover Operating cycle Solvency Debt to total assets Interest coverage Profitability Gross profit margin Profit margin Asset turnover Return on assets Amazon.com, Inc. 1.1:1 0.9:1 17.0 times 10.5 times 56 days 70.9% 15.7 times 39.6% 5.5% 1.4 times 7.8% Apple Inc. 1.4:1 1.0:1 14.1 times 37.1 times 36 days 79.8% 24.4 times 38.2% 20.9% 0.8 times 17.3%
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a Apple is more liquid with a better current ratio and acid...View the full answer
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Related Book For
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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