Chapter 2, Problem 2.4EYCT

Ratio Analysis Consider the following information taken from the stockholders equity section: How do you interpret the companys payout and profitability performance? Required: 1. Calculate the following for 2020. (Note. Round answers to two decimal places.) 2. CONCEPTUAL CONNECTION Assume 2019 ratios were: and the current year industry averages are: How do you interpret the companys payout and profitability performance?

What do the following data, taken from a comparative balance sheet, indicate about the companys ability to borrow additional long-term debt in the current year as compared to the preceding year?

To get an overall picture of each companys capital structure, it is helpful to look at a chart that summarizes the companys capital structure over the past decade. To obtain this chart, choose a company to start with and select FINANCIALS. Next, select MORE THOMSON REPORTS CHARTSCAPITAL STRICTURE. This should generate a chart that plots the companys total long-term debt, total common equity, and total current liabilities over the past decade. What, if any, are the major trends that emerge when youre looking at these charts? Do these companies tend to have relatively high or relatively low levels of debt? Do these companies have significant levels of current liabilities? Have their capital structures changed over time?