Question: Compute the Current Ratio, Quick Ratio, Times Interest Earned Ratio, and Liabilities-to-Equity Ratio for both Tesla and Toyota. Which company is more liquid? How do

  1. Compute the Current Ratio, Quick Ratio, Times Interest Earned Ratio, and Liabilities-to-Equity Ratio for both Tesla and Toyota.

  • Which company is more liquid? How do you know?
  • Which company is more solvent? How do you know?
  • Look at the trend of how the ratios have changed for the years presented in the financial statements of your main chosen company what does this tell you about solvency and liquidity? I.e., are they more or less liquid and solvent than the previous year?

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