Question: Ratios Thomas Edison Quick ratio 0.32 0.78 Cash debt coverage 0.56 0.53 Current cash debt coverage 0.56 1.38 Current ratio 0.41 1.03 Financial leverage 1.79

Ratios Thomas Edison
Quick ratio 0.32 0.78
Cash debt coverage 0.56 0.53
Current cash debt coverage 0.56 1.38
Current ratio 0.41 1.03
Financial leverage 1.79 2.07
Total-liabilities-to-equity 79% 107%
Profit margin 14.67% 18.27%
Return on assets 16.60% 25.00%
Return on equity 29.65% 51.80%

Based on the ratios, which of the companies (Thomas or Edison) is most liquid, most solvent?

Select one:

a. Edison is most liquid; Thomas is most solvent

b. Thomas is most liquid; Edison is most solvent

c. Edison is most liquid and most solvent

d. Thomas is most liquid and most solvent

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