Compute and Interpret Coverage, Liquidity and Solvency Ratios Selected balance sheet and income statement information fr
Posted: Sun May 29, 2022 8:55 pm
Compute and Interpret Coverage, Liquidity and Solvency
Ratios
Selected balance sheet and income statement information from
Amazon for 2016 through 2018 follows.
a. Compute profitability measures RNOA and ROE for 2018 and
2017. In which year are the measures stronger?
Round answers to one decimal place (ex: 0.2345 =
23.5%).
b. Compute coverage metrics Times interest earned and Cash from
operating activities to total debt for 2018 and 2017.
Round answers to two decimal places.
c. Determine liquidity for the company for 2018 and 2017 by
computing the current ratio and quick ratio.
Round answers to two decimal places.
d. Compute the Total liabilities‑to‑equity ratio and the Total
debt to equity ratio for 2018 and 2017.
Round answers to two decimal places.
Ratios
Selected balance sheet and income statement information from
Amazon for 2016 through 2018 follows.
a. Compute profitability measures RNOA and ROE for 2018 and
2017. In which year are the measures stronger?
Round answers to one decimal place (ex: 0.2345 =
23.5%).
b. Compute coverage metrics Times interest earned and Cash from
operating activities to total debt for 2018 and 2017.
Round answers to two decimal places.
c. Determine liquidity for the company for 2018 and 2017 by
computing the current ratio and quick ratio.
Round answers to two decimal places.
d. Compute the Total liabilities‑to‑equity ratio and the Total
debt to equity ratio for 2018 and 2017.
Round answers to two decimal places.