Purpose: Identify summary liquidity, solvency, and profitability information about companies, and compare this information across companies in
Question:
Purpose: Identify summary liquidity, solvency, and profitability information about companies, and compare this information across companies in the same industry.
Steps
1. Type in a company name, or use the index to find a company name. Choose Profile. Choose Key Statistics. Perform instruction (a) below.
2. Go back to Profile. Click on the company’s particular industry behind the heading “Industry.” Perform instructions (b), (c), and (d).
Instructions
Answer the following questions.
(a) What is the company’s name? What was the company’s current ratio and debt to equity ratio (a variation of the debt to total assets ratio)?
(b) What is the company’s industry?
(c) What is the name of a competitor? What are the competitor’s current ratio and its debt to equity ratio?
(d) Based on these measures: Which company is more liquid?
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118162286
7th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso