Comparing Firms Using Ratio Analysis

Consider the following data for several firms from $2020($$ millions$)$:

a$.$ Compute the operating cash flow to current liabilities $($OCFCL$)$ ratio for each firm.

b$.$ Compute the free cash flow for each firm.

c$.$ Comment on the results of your computations.

of the companies are producing much more cash than needed for capital expenditures.

of them are able to return substantial amounts of cash to shareholders through dividends and

share repurchases.