Exercise Algo Calculate and analyze ratios LO
Two online travel companies, ETravel and Pricecheck, provide the following selected financial data:
ETravelPricecheckTotal assets$ $ Total liabilitiesTotal stockholders equitySales revenue$ $ Interest expenseIncome tax expenseNet income
Required:
a Calculate the debt to equity ratio for ETravel and Pricecheck.
b Which company has higher leverage risk?
a Calculate the times interest earned ratio for ETravel and Pricecheck.
b Which company is better able to meet interest payments as they become due?
