Compute and Interpret Liquidity, Solvency and Coverage Ratios
Selected balance sheet and income statement information from Verizon Communications Inc. follows.
($ millions) 2016 2015
Current assets $26,395 $22,355
Current liabilities 30,340 35,052
Total debt 108,078 109,729
Total liabilities 220,148 226,333
Equity 24,032 17,842
Earnings before interest and taxes 27,059 33,060
Interest expense 4,376 4,920
Net cash flow from operating activities $22,715 $38,930
Required:
a. Compute the current ratio for each year and discuss any trend in liquidity.
b. What additional information about the numbers used to compute this ratio might be useful in helping you assess liquidity?
Answers: 2
Another question on Business
Business, 22.06.2019 12:30
Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented
Answers: 1
Business, 22.06.2019 22:40
Effective capacity is the: a. capacity a firm expects to achieve given the current operating constraints.b. minimum usable capacity of a particular facility.c. sum of all the organization's inputs.d. average output that can be achieved under ideal conditions.e. maximum output of a system in a given period.
Answers: 1
Business, 22.06.2019 23:00
Even sole proprietors should have at least how many computers? 1 2 3 4
Answers: 1
Business, 22.06.2019 23:30
Shelby bought her dream car, a 1966 red convertible mustang, with a loan from her credit union. if shelby paid 5.1% and the bank earned a real rate of return of 3.5%, what was the inflation rate over the life of the loan?
Answers: 2
You know the right answer?
Compute and Interpret Liquidity, Solvency and Coverage Ratios
Selected balance sheet and income sta...
Questions
Computers and Technology, 23.02.2021 18:20
Spanish, 23.02.2021 18:20
Physics, 23.02.2021 18:20
Mathematics, 23.02.2021 18:20
English, 23.02.2021 18:20
