Below are some of Facebook's financial ratios for fiscal 2020 and fiscal 2019. 2020 2019 Quick Ratio 1.0 1.5 Days Receivable 8 days 6 days Return on Assets 16% 18% Gross Margin % 80% 60% Debt-to-Equity Ratio 1.3 1.1 1. Is Facebook's Quick Ratio more favorable in 2020 or 2019? 2. Does Facebook's Days Receivable ratio suggest that the company is collecting receivables faster in 2020 or 2019? 3. Is Facebook's Return on Assets more favorable in 2020 or 2019? 4. Is Facebook's Gross Margin percentage more favorable in 2020 or 2019? 5. Does Facebook's Debt-to-Equity ratio suggest that the company carrying more debt per unit of equity in 2020 or 2019?

Below are some of Facebook's financial ratios for fiscal 2020 and fiscal 2019. 2020 2019 Quick Ratio 1.0 1.5 Days Receivable 8 days 6 days Return on Assets 16% 18% Gross Margin % 80% 60% Debt-to-Equity Ratio 1.3 1.1 1. Is Facebook's Quick Ratio more favorable in 2020 or 2019? 2. Does Facebook's Days Receivable ratio suggest that the company is collecting receivables faster in 2020 or 2019? 3. Is Facebook's Return on Assets more favorable in 2020 or 2019? 4. Is Facebook's Gross Margin percentage more favorable in 2020 or 2019? 5. Does Facebook's Debt-to-Equity ratio suggest that the company carrying more debt per unit of equity in 2020 or 2019?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Below are some of Facebook's financial ratios for fiscal 2020 and fiscal 2019.
2020
2019
Quick Ratio
1.0
1.5
Days Receivable
8 days
6 days
Return on Assets
16%
18%
Gross Margin %
80%
60%
Debt-to-Equity Ratio
1.3
1.1
1. Is Facebook's Quick Ratio more favorable in 2020 or 2019?
2. Does Facebook's Days Receivable ratio suggest that the company is collecting
receivables faster in 2020 or 2019?
3. Is Facebook's Return on Assets more favorable in 2020 or 2019?
4. Is Facebook's Gross Margin percentage more favorable in 2020 or 2019?
5. Does Facebook's Debt-to-Equity ratio suggest that the company carrying more
debt per unit of equity in 2020 or 2019?

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