You have been presented with the following selected information taken from the financial statements of Magna International Inc. (in U.S. $ millions):

Instructions
(a) Calculate each of the following ratios for 2012 and 2011. Industry ratios are shown in parentheses.
1. Current ratio (2012, 1.5:1; 2011, 1.5:1)
2. Receivables turnover (2012, 6.7 times; 2011, 6.2 times)
3. Inventory turnover (2012, 9.0 times; 2011, 11.4 times)
4. Debt to total assets (2012, 34.6%; 2011, 37.1%)
5. Times interest earned (2012, 7.6 times; 2011, 8.0 times)
(b) Based on your results in part (a), comment on Magna's liquidity and solvency.
(c) Magna had a U.S. $2.25-billion operating line of credit, all of which was unused at December 31, 2012. Most of the bank debt held by the company was in Brazilian and Chinese currencies, which fell in value relative to the Canadian dollar in 2012. Discuss the implications of this information for your analysis.
(d) Magna had operating lease commitments totalling U.S. $1,634 million in 2012 and U.S. $1,608 million in 2011. Discuss the implications of this information for your analysis.

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2012 2011 2010 Statement of financial position $4,398 2,045 8,146 14,679 5,724 6,477 $ 4,774 $ 3,543 Inventory Total current assets Total assets Current liabilities Total liabilities 2,512 9,135 17,109 6,684 7,651 1,822 7,485 13,674 4,968 5,648 Income statement Net sales Cost of goods sold Interest expense Income tax expense Profit $30,837 27,010 16 324 1,433 $28,748 25,434 $23,465 20,483 202 1,018 194 1,003