Which company was most efficient as generating revenue

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Reference no: EM131577944

Need help, please. I was asked these five questions, but I don't know what I need to look or to solve them. I do have some guesses, though.

I was given the following information for each company:

  • ROA
  • ROE
  • Revenue per employee
  • Quick Ratio
  • Current Ratio
  • LT Debt to equity
  • Total Debt to equity
  • Total asset turnover
  • receivables turnover
  • inventory turnover
  • accounts payable turnover
  • cash for per share
  • book value per share

I essentially want to know what piece of the above information I need to be looking at to answer each of these questions:

1. Over the 5-year period presented, which company was most efficient as generating revenue from its investment in total assets?

2. Over the 5-year period presented, which company was best able to meet their periodic interest payments related to debt obligations?

3. Based on the 5-year performance, which company generated the highest return on its total financing, i.e. debt and equity?

4. Based on the 5-year performance, which company is in the best position to meet its long-term debt obligations and stay in business?              

5. If you were a bank lending officer and each of these companies applied for a $500 million short-term borrowing (i.e. to be repaid in a less than a year), which company would you be more likely to lend to and why? Would your decision and analysis differ if the company was required to repay the borrowing in 5-years rather than less than a year? Please explain your answer.

Reference no: EM131577944

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