Question

TAKING IL FURTHER Which company is using leverage more effectiverys expiam. 16.9% PIS-10B The following ratios are available
0 0
Add a comment Improve this question Transcribed image text
Answer #1
Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!
Answer a
Shaw is more liquid because its current ans acid test ratio is much better than Rogers. Its account receivable turnover is also higher than Rogers.
Answer b
Shaw is more solvent because its debt to asset ratio and Interest coverage ratio is higher than Rogers. In case of any uncertainty Shaw will be able to pay off its debts but its looks uncertain in case of Rogers.
Answer c
Shaw is more profitable than Rogers. Because its profit margin, asset turnover ratio, return on assets and return on equity is much better than Rogers.
Answer d
Price earnings ratio is the ratio of current market price to earnings per share of the company. Rogers is much better off than Shaw. So investor should prefer Rogers. Thus the answer is not consistent with previous answers.
Add a comment
Know the answer?
Add Answer to:
TAKING IL FURTHER Which company is using leverage more effectiverys expiam. 16.9% PIS-10B The following ratios...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • do part a),b),c) & Taking it further P18-10B The following ratios are available for Rogers Communications...

    do part a),b),c) & Taking it further P18-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. Evaluat for a recent year: (LO 4, Liquidity Rogers Shaw Current ratio 0.48:1 0.95:1 Acid-test ratio 0.36:1 0.81:1 Receivables turnover 8.3 times 10.7 times Solvency Debt to total assets 79.3% 63.7% Interest coverage 3.3 times 5.5 times Profitability Profit margin 10.4% 16.9% Asset turnover 0.5 times 0.4 times Return on assets 5.4% 6.8% Return on equity 26.4% 19.0% Instructions...

  • pally is using leverage more effectively? Explain. The The following ratios are available for Rogers Communications...

    pally is using leverage more effectively? Explain. The The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. PI8- for a recent year: ns Inc. and Shaw Communications Inc. Evaluate ratios. (LO 4,5,6) AN Rogers Shaw 0.48:1 0.36:1 0.81:1 8.3 times 10.7 times 0.95:1 Liquidity Current ratio Acid-test ratio Receivables turnover Solvency Debt to total assets Interest coverage Profitability Profit margin Asset turnover Return on assets Return on equity 79.3% 3.3 times 63.7% 5.5 times 10.4% 0.5...

  • 18-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. Evaluate ratios....

    18-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications Inc. Evaluate ratios. for a recent year: (LO4,5,6) AN Liquidity Rogers Shaw Current ratio 0.48:1 0.95:1 Acid-test ratio 0.36:1 0.81:1 Receivables turnover 8.3 times 10.7 Limes Solvency Debt to total assets 79.3% 63.7% Interest coverage 3.3 times 5.5 times Profitability Profit margin 10.4% 16.9% Asset turnover 0.5 times 0.4 times Return on assets 5.4% 6.8% Return on equity 26.4% 19.0% Instructions (a) Which company is more liquid?...

  • PI8-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications for a recent...

    PI8-10B The following ratios are available for Rogers Communications Inc. and Shaw Communications for a recent year: Liquidity Rogers Shaw Current ratio Acid-test ratio Receivables turnover 0.48:1 0.95:1 0.36:1 8.3 times 0.81:1 10.7 times Solvency Debt to total assets 79.3% 63.7% Interest coverage 3.3 times 5.5 times nid Profit margin uho Profitability Salto 10.4% 16.9% Asset turnover 0.5 times 0.4 times Return on assets 5.4% 6.8% Return on equity 26.4% 19.0% Instructions (a) Which company is more liquid? Explain. (b)...

  • which of the following is true regarding asset management ratios? -350_INTRODUCTION TO FINANCE (SPRING 2019) Which...

    which of the following is true regarding asset management ratios? -350_INTRODUCTION TO FINANCE (SPRING 2019) Which of the following is true regarding Asset Management Ratios? I. They measure the company's ability to use its assets to pay debt. Il. They include inventory turnover, receivables turnover, and asset turnover. Ill. They measure how efficiently a company uses its assets to generate sales. IV. They measure the company's ability to generate earnings. Select one: o a. Ill only. b.I and Il only...

  • Based on the ratio analysis below, in which company would you be willing to invest and why? RATIOS S&P 500 For...

    Based on the ratio analysis below, in which company would you be willing to invest and why? RATIOS S&P 500 Ford Motor Co General Motors Co ANALYSIS Profitability Ratios (%) Gross Margin 15.01 17.9 General Motors Company (GM) has higher ratios than Ford Motors(FM) which indicates GM has higher profitability than FM. Particularly the EBITDA margin and operating margins reflect GM has an edge over FM. EBITDA Margin 8.66 15.55 Operating Margin 2 3 Pre-Tax Margin 2.71 5.81 Effective Tax...

  • Do part of the financial analysis project. Using the correct financial ratios evaluate the company with...

    Do part of the financial analysis project. Using the correct financial ratios evaluate the company with regard to its short-term liquidity, long-term solvency and profitability. See pages 604 and 605 for which financial ratios should be used to evaluate each category. Your evaluation declare whether Key Tronic is: strong, above average, average, below average, weak, for each short-term liquidity, long-term solvency and profitability. Be sure to mention the financial ratio you are looking at in making this determination and it...

  • Using the financial ratios provided in Table 4.1 and the financial statement infor- mation presented below...

    Using the financial ratios provided in Table 4.1 and the financial statement infor- mation presented below for Costco Wholesale Corporation, calculate the follow ing ratios for Costco for both 2013 and 2014: a. Gross profit margin b. Operating profit margin c. Net profit margin d. Times-interest-earned (or coverage) ratio e. Return on stockholders' equity 1. 1 f. Return on assets g. Debt-to-equity ratio h. Days of inventory . Inventory turnover ratio j. Average collection period Based on these ratios, did...

  • Can somebody help me with my accounting project, here are the instructions: Financial Analysis Project Project...

    Can somebody help me with my accounting project, here are the instructions: Financial Analysis Project Project Requirements and Instructions Sheet Objective In accordance with the Knowledge, Skills and Abilities objectives of the course, you are required to evaluate the financial performance of a publicly traded US Corporation and write a 10 page (excluding appendix and other supporting documents) report on your findings. This event will help participants develop the ability to understand, analyze, and make decisions based on financial information—these...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT