Question - Consider the following 2013 data for two manufacturing firms ($ in millions):
|
Current liabilities
|
Cash from Operations
|
Expenditures on PPE
|
Dividends (cash)
|
|
Bandit Industries
|
$28,600
|
$25,400
|
$3,800
|
$ 8,600
|
|
Cloud Company
|
44,800
|
47,200
|
6,200
|
15,800
|
a. Compute the operating cash flow to current liabilities ratio for each firm for 2013.
b. Compute the operating cash flow to capital expenditures ratio for 2013.
c. Comment on the results of your computations.