Question: Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb 2015 annual report. Using the ratio definitions from Exhibit 4.6, calculate the


Analyzing Financial Risk Presented below are summary financial data from the Bristol-Myers Squibb 2015 annual report. Using the ratio definitions from Exhibit 4.6, calculate the following liquidity and solvency ratios for 2015 and 2014. 2015 2014 (amounts in millions) Balance sheet Cash and cash equivalents Marketable securities $2,385 $5,571 1,885 1,864 4,299 3,390 Accounts receivable (net) Total current assets Total assets 10,415 14,608 31,748 33,749 8,017 8,461 Current liabilities 0 0 Current portion of long-term debt Long-term debt Shareholders' equity 6,550 7,242 14,424 14,983 Income statement Interest expense $184 $203 Net income before taxes 2,077 2,381 Round all answers to two decimal places. Enter the answers for cash and marketable securities to total assets and long-term debt to total assets as percentages (ex: 0.23456 = 23.46%). 2015 2014 Liquidity Cash and marketable securities to total assets Quick ratio 20 x % 30 X % 20 X 20 X Current ratio 20 x 20 X 30 x % 30 X % Solvency Long-term debt to total assets Long-term debt to shareholders' equity Interest coverage ratio 30 X 30 X 20 X 20 X
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