Apple Inc. Amazon Inc. Current Ratio 1.36 1.10 Debt to Equity Ratio 395.70% 262.95% Gross Profit Ratio 38.33% 25.45% Return on Equity Ratio 74.99% 24.95%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Based on these calculations, which company appears to be more risky and which company appears to be more profitable?  How can you tell? (Keep in mind that the current ratio and debt to equity ratio are "risk ratios" and the gross profit ratio and return on equity ratio are "profitability ratios").

Apple Inc.
Amazon Inc.
Current Ratio
1.36
1.10
Debt to Equity Ratio
395.70%
262.95%
Gross Profit Ratio
38.33%
25.45%
Return on Equity Ratio
74.99%
24.95%
Transcribed Image Text:Apple Inc. Amazon Inc. Current Ratio 1.36 1.10 Debt to Equity Ratio 395.70% 262.95% Gross Profit Ratio 38.33% 25.45% Return on Equity Ratio 74.99% 24.95%
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