Companies that operate in different industries may have very different financial ratio values. These differences may grow
Question:
Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries.
Compare three leading companies on their current ratio, debt ratio, leverage ratio, and times-interest-earned ratio. Compute the ratios for Company F, Company K, and Company R.
Based on your computed ratio values, which company looks the leastrisky?
Transcribed Image Text:
(Amounts in millions or billions)Company F Company K Company R Income data Total revenues Operating income Interest expense Net income 1 ¥ $9,724 292 46 23 17,307 136,492 5,592 736 448 224 15 Assets and liability data Amounts in millions or billions) Total current assets Long-term assets Total current liabilities Long-term liabilities Stockholders' equity 434 96 207 107 216 5,383 405 2,197 148,526 49,525 72,100 2,318 110,107 15,844 1,273
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Amounts in millions or billions Company Company Company Ratio F K R Current Total current assets 434 ...View the full answer
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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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