Company Comparison Tesla GM Ford Toyota Current Ratio 1.24 1.07 1.16 1.04 Total asset 0.77 0.60 0.60 0.59 turnover ratio Debt ratio 0.80 0.81 1.92 4.83 Gross profit 16.55% 10.18% 13.60% 10.01% margin P/E ratio N/A 8.15 N/A 7.81 The company with the best debt ratio, P/E ratio, and total asset turnover ratio is: Select one: O a. GM O b. Ford ○ c. Toyota O d. Tesla

Company Comparison Tesla GM Ford Toyota Current Ratio 1.24 1.07 1.16 1.04 Total asset 0.77 0.60 0.60 0.59 turnover ratio Debt ratio 0.80 0.81 1.92 4.83 Gross profit 16.55% 10.18% 13.60% 10.01% margin P/E ratio N/A 8.15 N/A 7.81 The company with the best debt ratio, P/E ratio, and total asset turnover ratio is: Select one: O a. GM O b. Ford ○ c. Toyota O d. Tesla

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

Problem 1PS

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Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $1,078,700 $929,900 $781,400 $667,900 $566,000 Interest expense 366,800 334,800 289,100 220,400 175,500 Income tax expense 345,184 260,372 218,792 173,654 135,840 Total assets (ending balance) 8,226,651 8,779,231 6,276,721 6,620,869 5,020,826 Total stockholders' equity (ending balance) 2,543,681 3,148,667 2,003,133 2,553,135 1,531,881 Average total assets 8,502,941 7,527,976 6,448,795 5,517,391 4,722,930 Average stockholders' equity 2,846,174 2,575,900 2,278,134 2,042,508 1,808,307 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years:…
Find 1. Total Debt Ratio 2. Debt to Equity Ratio 3. Net profit Margin Just practice and work check
Which company is more liquid and which company is more solvent? HAL SLB Liquidity Current Ratio 2.32 1.17 Quick Ratio 1.51 0.79 Solvency Liabilities to equity 1.72 0.93 Times-interest-earned 4.45 5.68
Question 17 The following presents comparative information of Target and Walmart: Wal-Mart Current Ratio Quick Ratio Debt Ratio Target Current Ratio Quick Ratio Debt Ratio 3Q 2007 0.844 0.133 61.79% 3Q 2007 1.352 0.571 62.67% 3Q 2008 0.872 0.151 60.95% 3Q 2008 1.500 0.661 71.13% Which of the following is correct? 3Q 2009 0.878 0.165 59.73% 3Q 2009 1.580 0.636 67.44% Walmart was more liquid but less solvent than Target. Walmart was less liquid but more solvent than Target. 3Q 2010 0.871 0.219 63.60% 3Q 2010 1.556 0.584 66.85% 3Q 2011 0.880 0.176 63.40% 3Q 2011 1.299 0.462 68.49%
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Qb 08.
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Liquidity Ratios Provide a brief definition of what liquidity ratios mean to the profitability of a company. What are the differences between Samsung and Apple in relationship to each of the ratios? What do the ratios mean to the company’s profitability? Is it good or bad?
Ratios Calculated Year 1 Year 2 3.64 +Q+ Price-to-cash-flow 5.20 Inventory turnover 10.40 Debt-to-equity 0.70 8.32 0.56 Year 3 2.91 6.66 0.45 Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. Cold Goose Metal Works Inc.'s ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.70 to 0.45. A decline in the inventory turnover ratio can be explained by the new Inventory management system that the company recently adopted, which led to more efficient inventory management. A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm. A plausible reason why Cold Goose Metal Works Inc.'s price-to-cash-flow ratio has decreased is that investors expect lower cash flow per share in the future.
For each ratio listed, identify whether the change in ratio value from the Prior Year to the Current Year is usually regarded as favorable or unfavorable. Ratio 1. Profit margin 2. Debt ratio 3. Gross margin 4. Acid-test ratio 5. Accounts receivable turnover 6. Basic earnings per share 7. Inventory turnover 8. Dividend yield Current Year Prior Year Change 9% 8% 47 % 42 % 34 % 46 % 1.00 1.15 5.5 6.7 $ 1.25 $ 1.10 3.6 3.4 2.0 % 1.2 %
EAST COAST YACHTS 2020 Income Statement Sales Cost of goods sold Selling, general, and administrative Depreciation EBIT Interest expense EBT Taxes (25%) Net income Dividends Retained earnings $550,424,000 397,185,000 65,778,000 17,963,000 $ 69,498,000 9,900,000 $ 59,598,000 14,899,500 $ 44,698,500 $ 19,374,500 25,324,000 Current assets Cash and equivalents Accounts receivable Inventory Other Total current assets Fixed assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Intangible assets and others Total fixed assets Total assets EAST COAST YACHTS 2020 Balance Sheet $ 10,107,000 16,813,300 18,135,700 1,054,900 $ 46,110,900 $412,032,000 (102,452,000) $309,580,000 6,772,000 $316,352,000 $362,462,900 Current liabilities Accounts payable Accrued expenses Total current liabilities Long-term debt Total long-term liabilities Stockholders' equity Preferred stock Common stock Capital surplus Accumulated retained earnings Less treasury stock…
Find the following financial ratios for LVMH Moet Hennessy Louis Vuitton SA (use year-end figures rather than average values where appropriate) (Round your answers to 2 decimal places (e.g., 32.16).) : 2015 2016 Short-term solvency ratios: Current ratio Quick ratio Cash ratio Asset utilization ratios: Total asset turnover Inventory turnover Receivables turnover Long-term solvency ratios: Total debt ratio Debt–equity ratio Equity multiplier Times interest earned ratio Profitability ratios: Profit margin % % Return on assets % % Return on equity % %

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