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Liquidity, profitability, and solvency of the companies.

Selected financial data of two intense competitors in a recent year are presented below
in millions of dollars.

Instructions
1.55 1.91
5.67 3.21
6.66 8.32
0.17 5.67

1 1

(a) For each company, compute the following ratios.

(1) Current.
(2) Receivables turnover.
(3) Inventory turnover.
(4) Profit margin.
(5) Asset turnover.
(6) Return on assets.
(7) Return on common stockholders' equity
(8) Debt to total assets.
(9) Times interest earned
(10) Current cash debt coverage.
(11) Cash return on sales.
(12) Cash debt coverage.

(b) Compare the liquidity, profitability, and solvency of the two companies.

(See attached file for full problem description with chart)

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Selected financial data of two intense competitors in a recent year are presented below in millions of dollars...
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Selected financial data of two intense competitors in a recent year are presented below
in millions of dollars.
...

Solution Summary

This discusses the liquidity, profitability, and solvency of the companies.

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