Companies that operate in different industries may have very different financial ratio values. These differences may grow
Question:
Compare three leading companies on their current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Compute the ratios for Company B, Company N, and Company V.
Based on your computed ratio values, which company looks the leastrisky?
Transcribed Image Text:
(Amounts in millions or billions) Company B Company N Company V 97,320 136,146 5,646 655 450 Income data Total revenues Operating income Interest expense Net income 59,732 295 41 230 27 17 Assets and liability data (Amounts in millions or billions) Total current assets Long-term assets Total current liabilities Long-term liabilities Stockholders' equity 5,321 144,720 65,828 72,000 2,277 111,177 27.371 429 81 227 592 2,217 206 1,419
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Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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