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 16,438 33,921 9,830 37,684 Earnings before interest and tax (EBIT) 2,541 3,142 Interest expense, gross 554 537 HAL SLB $2,008 $1,433 1,344 5,391 8,117 11,151 15,731 4,946 13,891 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 1. Current ratio 2. Quick ratio 3. Times interest earned 4. Liabilities-to-equity SLB b. Which company appears more liquid? c. Which company appears more solvent? + +
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 16,438 33,921 9,830 37,684 Earnings before interest and tax (EBIT) 2,541 3,142 Interest expense, gross 554 537 HAL SLB $2,008 $1,433 1,344 5,391 8,117 11,151 15,731 4,946 13,891 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 1. Current ratio 2. Quick ratio 3. Times interest earned 4. Liabilities-to-equity SLB b. Which company appears more liquid? c. Which company appears more solvent? + +
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.8E
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