Compute the debt to assets ratio for each company

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Performing ratio analysis using real-world data

Texas Instruments, Inc., claims to be the world leader in digital signal processing and analog technologies, the semiconductor engines of the Internet age." Eastman Kodak Company manufactures Kodak film, cameras and related products. The following data were taken from the companies' December 31, 2007, annual reports. Dollar amounts are in millions.


Eastman Kodak

Texas Instruments

Current assets

$ 6,053

$ 6,918

Current liabilities

4,446

2,025

Total assets

13,659

12,667

Total liabilities

10,630

2,692

Required

a. Compute the current ratio for each company.

b. Compute the debt to assets ratio for each company.

c. Based on the ratios computed in Requirements a and b, which company had the better liquidity in 2007?

d. Based on the ratios computed in Requirements a and b, which company had the better solvency in 2007?

Reference no: EM13536266

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