Amazon.com, Inc. is one of the largest Internet retailers in the world. We will use Amazon as
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Ratios can be used to compare companies in the same industry. For Amazon, there are a number of competitors that sell media, electronic, and other merchandise. Best Buy, Inc. is one such company. The following total liabilities and stockholders' equity information (in mil¬lions) is provided for Amazon and Best Buy for the end of a recent year:
A. Compute the ratio of liabilities to stockholders' equity for each company. (Round to two decimal places.)
B. What conclusions regarding the margin of protection to creditors can you draw for these two companies?
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Related Book For
Financial And Managerial Accounting
ISBN: 9781337119207
14th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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