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.