Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions Cash and equivalents Short-term investments. Accounts receivable Current assets Current liabilities Total liabilities Total equity HAL SLB $2,008 $1,433 1,344 5,077 7,645 11,151 15,731 4,658 13,081 16,438 33,921 9,258 35,488 Earnings before interest and tax (EBIT) 2,393 2,959 Interest expense, gross 554 537 a. Compute the following measures for both companies. Note: Round your final answers to two decimal places (for example, enter 6.78 for 6.77555). HAL 2.28 x 1.5 x 4.54 x 1.69 x SLB 1.114 x 0.79 x 5.79 x 0.91 x 1. Current ratio 2. Quick ratio 3. Times interest earned 4. Liabilities-to-equity b. Which company appears more liquid? HAL c. Which company appears more solvent? SLB ✔

If given the opportunity, in which of the firms would you invest based on the result of your analysis of both companies and the comparison with the industry? If you would not invest, explain your reasons according to the results obtained. Company Name:   Year 2018 Chemicals and Allied Products Industry Ratios  ………….. Solvency or Debt Ratios Merck J&J 2018 Debt ratio  0.67  0.61 0.47 Debt-to-equity ratio  0.93  0.51 0.38 Interest coverage ratio  12.27  18.91 -9.43 Liquidity Ratios       Current ratio  1.17   1.47 3.47 Quick ratio  0.92   1.16 2.12 Cash ratio  0.40   0.63 2.24 Profitability Ratios       Profit margin  14.64%   18.75% -93.4% ROE (Return on equity), after tax  23.03%   25.60% -248.5 ROA (Return on assets)  7.49%   10.00% -146.5 Gross margin  68.06%   66.79% 55.3% Operating margin (Return on sales)  19.62%   24.27%…

1. Calculate the cash operating cycle of Stone Limited for the year ended 30 April, 2018 and 2019.2. Calculate the comparative ratios for Stone limited for the year ended 30 April 2019. (to two decimal places where appropriate).3. Based on the result of the previous year end and the industry average. Draft a report addressed to the Board of Directors of Stone Limited analysing the performance of the company for the year 2019

You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information:   Table 1: FBC statement of financial position (R millions)   2018 2017 Cash and equivalents R149 R83 Accounts receivable 295 265 Inventory 275 285 Total current assets R719 R633       Total fixed assets 3 909 3 856       Accounts payable 228 220 Notes payable 0 0 Total current liabilities 228 220       Long term debt 1 800 1 650       Total liabilities and shareholders equity 3 909 3 856 Number of shares outstanding (millions) 100 100       Additional information: Depreciation (2018): R483. The firm spent R250m in profitable projects during the…

Long-Term Solvency Analysis The following information was taken from Station Company's balance sheet: Fixed assets (net) $1,881,600 Long-term liabilities 448,000 Total liabilities 2,038,400 Total stockholders' equity 1,568,000 Determine the company's (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders' equity. If required, round your answers to one decimal place. a.  Ratio of fixed assets to long-term liabilities fill in the blank  b.  Ratio of liabilities to stockholders' equity fill in the blank

Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions Cash and equivalents Short-term investments Accounts receivable HAL SLB $2,008 $1,433 1,344 5,182 7,802 Current assets Current liabilities Total liabilities Total equity 11,151 15,731 4,754 13,351 16,438 33,921 9,449 36,220 Earnings before interest and tax (EBIT) 2,442 3,020 Interest expense, gross 554 537 a. Compute the following measures for both companies. Note: Round your final answers to two decimal places (for example, enter 6.78 for 6.77555). HAL SLB 1. Current ratio 2.32 X 1.17 x 2. Quick ratio 1.5 x 0.68 * 3. Times interest earned 4.45 x 5.67 x 4. Liabilities-to-equity 1.7 x 0.92 x b. Which company appears more liquid? HAL c. Which company appears more solvent? SLB =>

Compute Liquidity and Solvency Ratios for Competing Firms Halliburton and Schlumberger compete in the oil field services sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions Cash and equivalents Short-term investments Accounts receivable Current assets Current liabilities Total liabilities Total equity Earnings before interest and tax (EBIT) Interest expense, gross HAL SLB $2,008 $1,433 1,344 5,391 8,117 11,151 15,731 4,946 13.891 16,438 33,921 1. Current ratio 2. Quick ratio 3. Times interest earned 4. Liabilities-to-equity 9,830 37,684 2,541 3,142 554 537 a. Compute the following measures for both companies. Note: Round your final answers to two decimal places (for example, enter 6.78 for 6.77555). HAL SLB b. Which company appears more liquid? c. Which company appears more solvent? ◆

Calculate the Rate of Return on Assets (ROA) for 2011. Disaggregate ROA into the profit margin for ROA and total assets turnover components. Calculate the Rate of Return on Common Stockholders’ Equity (ROCE) for 2011. Disaggregate ROCE into the profit margin for ROCE, total assets turnover and capital structure leverage components.

a) Consider the financial ratios of ABK Bank and the average ratios of peer banks based on 2015 year-end data shown in the table below: Ratios ABK Bank Peer Banks Return on equity (ROE) 14.50% 7.40% Return on assets (ROA) Asset utilisation (AU) Expense ratio (ER) 1.68% 0.85% 6.65% 5.50% 4.95% 4.62% TAX 0.02% 0.03% Note that TAX = applicable income tax/total assets Compare and critically discuss the performance of ABK Bank and that of its peer banks. Conduct a return on equity decomposition analysis for ABK bank and the peer banks as part of your discussion. What are the possible limitations in your analysis?

PERFORM A LIQUIDITY AND PROFITABILITY ANALYSIS ON THE FOLLOWING COMPANY UTILIZING THE FOLLOWING RATIOS: ASSET TURNOVER RETURN ON ASSESTS RETURN ON EQUITY   statement of operations 12 Months Ended Jul. 31, 2020 Jul. 31, 2019 Revenues:     Revenues  $ 1,497,826,000  $ 1,684,392,000 Costs and expenses:     Operating expense - personnel, vehicle, plant and other 493,055,000 468,868,000 Operating expense - equipment lease expense 33,017,000   Equipment lease expense, preadoption   33,073,000 Depreciation and amortization expense 80,481,000 78,846,000 General and administrative expense 45,752,000 59,994,000 Non-cash employee stock ownership plan compensation charge 2,871,000 5,693,000 Asset impairments 0 0 Loss on asset sales and disposals 7,924,000 10,968,000 Operating income 148,670,000 113,028,000 Interest expense (192,962,000) (177,619,000) Loss on extinguishment of debt (37,399,000)   Other income (expense), net (460,000) 369,000 Loss before income…