User Account

All Pages

Compute Liquidity and Solvency Ratios for Competing Firms

Assignment Help Accounting Basics
Reference no: EM132743826

Question - Compute Liquidity and Solvency Ratios for Competing Firms

Halliburton and Schlumberger compete in the oil ?eld services sector. Refer to the following 2018 financial data for the two companies to answer the requirements.

$ millions

HAL

SLB

Cash and equivalents

$2,008

$1,433

Short-term investments

-

1,344

Accounts receivable

5,286

7,960

Current assets

11,151

15,731

Current liabilities

4,850

13,621

Total liabilities

16,438

33,921

Total equity

9,639

36,952

Earnings before interest and tax (EBIT)

2,492

3,081

Interest expense, gross

554

537

Required -

a. Compute the following measures for both companies.

1. Current ratio

2. Quick ratio

3. Times interest earned

4. Liabilities-to-equity

b. Which company appears more liquid?

c. Which company appears more solvent?

Reference no: EM132743826

Questions Cloud

Find rbc in a normal functioning kidney : You have a patient that found blood in their urine. To further diagnose the patients' disease you need to remember where you would expect to find RBC
What the amount of cash received arising from the assignment : On December 1, 2018 Iris Company assigned P1,500,000, What the amount of cash received arising from the assignment of the receivable is ?
What the overtime premium amount is : Suppose a technican who assembles Honda cars earns $16 per hour. The technican works 48 hours during a week instead of the scheduled time of 40 hours.
How and where do americans develop the public opinions : How does the salience of issues to voters affect interest group / lobbyist use of money in politics? How and where do Americans develop their public opinions?
Compute Liquidity and Solvency Ratios for Competing Firms : Compute Liquidity and Solvency Ratios for Competing Firms - Which company appears more liquid? Which company appears more solvent
Calculate the equity value for ocean and desert industries : Cash and debt are constant. Debt refers to interest-bearing liabilities. Calculate the 2010 equity value. Round your answer to the nearest dollar.
Recognizing the ebv antigen during the second infection : You have a patient that was infected with the Epstein-Barr virus (EBV) when she was a child. During the first infection, she experienced a mild sore throat
What the total direct materials purchases of materials : What the total direct materials purchases of materials A and B required for August production is? Expected sales volume (units), August75,000
How do members of the trypanosoma group escape : How do members of the Trypanosoma group escape the host immune system?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd