Question: Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following
Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios for Year 1 and Year 2. (amounts in millions) Year 1 Year 2 Balance sheet Cash and cash equivalents $3,680 $3,050 Marketable securities 3,794 2,749 Accounts receivable (net) 4,373 3,378 Total current assets 14,801 12,283 Total assets 30,435 28,138 Current liabilities 9,843 6,890 Current portion of long-term debt 1,883 231 Long-term debt 8,463 8,364 Shareholders equity 10,202 11,208 Income statement Interest expense $310 $349 Net income before taxes 4,418 4,516 Round all answers to two decimal places. Year 1 Year 2 Liquidity Cash and marketable securities to total assets Answer % Answer % Quick ratio Answer Answer Current ratio Answer Answer Solvency Long-term debt to total assets Answer % Answer % Long-term debt to shareholders equity Answer Answer Interest coverage ratio Answer Answer
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