Nestls financial statements are presented in Appendix B. Financial statements of Delfi Limited are presented in Appendix

Question:

Nestlé’s financial statements are presented in Appendix B. Financial statements of Delfi Limited are presented in Appendix C.

Instructions
a. Based on the information contained in those financial statements, compute the following ratios for each company for the most recent fiscal year reported.
1. Debt to assets ratio.
2. Times interest earned.
b. What conclusions concerning the companies’ long-run solvency can be drawn from these ratios?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... 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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