Advanced Micro Devices, Inc. (AMD) is a global semiconductor company with facilities around the world. AMD began

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Advanced Micro Devices, Inc. (AMD) is “a global semiconductor company with facilities around the world.” AMD began operations in 1969. Texas Instruments, Inc. is the company that invented the integrated circuit over 45 years ago. It has more than 100,000 customers in over 30 countries. The following data were taken from the companies’ 2016 annual reports. Dollar amounts are in millions.

Advanced Micro Devices Техas Instruments Current assets Current liabilities Total assets Total liabilities $2,530 1,3


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 2016?
d. Based on the ratios computed in Requirements a and b, which company had the better solvency in 2016?

Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...
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Related Book For  book-img-for-question

Introductory Financial Accounting for Business

ISBN: 978-1260299441

1st edition

Authors: Thomas Edmonds, Christopher Edmonds

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