Calculate the return on assets

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Question: Two of the world's leading cruise lines are Royal Caribbean Cruises and Carnival Corporation.Selected financial data for these two close competitors are as follows:

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Required: 1. Calculate the debt to equity ratio for Royal Caribbean and Carnival for the most recent year. Which company has the higher ratio? Compare your calculations with those for Coca-Cola and PepsiCo reported in the chapter.

2. Calculate the return on assets and the return on equity for Royal Caribbean and Carnival. Which company has the better profitability ratios? How do they compare with those for Coca-Cola and PepsiCo reported in the chapter?

3. Calculate the times interest earned ratio for Royal Caribbean and Carnival. Which company is better able to meet interest payments as they become due? Compare your calculations with those for Coca-Cola and PepsiCo reported in the chapter. Which industry has a better times interest earned ratio?

Reference no: EM131521775

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