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Homework: Chapter 14 Homework Score: 0 of 1 pt P14-16 (similar to) Save 9 of 9 (4 complete) HW Score: 44.44%, 4 of 9 pts Ques

1) Times Interest Earned for Ford Motor and General Motor? 4 decimal places

2) Current ratio for Ford and General? 4 decimals

3) Total Asset turnover ratio for Ford and General? 4 decimals

4) Financial leverage ratio for both is? 4 decimals

5) Profit Margin Ratio for both? 4 dec.

6) The Return on Equity for both is? 4 decimals

7) Which is the best company to invest in to?

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Answer #1
Formula General motors Ford motor company
Times interest earned EBIT/Interest

7764/357

21.7479

7856/724

10.8508

Current ratio current asset/current liabilities

81486/62472

1.3044

131554/19459

6.7606

Total asset turnover net sales/Average asset invested

155316/166391

.9334

146864/202065

.7268

Financial leverage ratio total asset/total equity

166391/42628

3.9033

202065/28235

7.1565

Profit nargin net income /sales

5306/155316

.034163 or 3.4163%

7053/146864

4.8024%

Return on equity net income/equity

5306/42628

12.4472%

7053/28235

24.9796%

Ford motor company is best to invest in since it is performing well

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