Question:
Key comparative figures for Research In Motion and Apple follow.
|
|
Research In Motion
|
Apple
|
|
($ millions)
|
Current Year
|
Prior Year
|
Current Year
|
Prior Year
|
|
Total liabilities
|
$ 2,602
|
$ 2,227
|
$15,861
|
$13,874
|
|
Total assets
|
10,204
|
8,101
|
47,501
|
36,171
|
1. What is the debt ratio for Research In Motion in the current year and for the prior year?
2. What is the debt ratio for Apple in the current year and for the prior year?
3. Which of the two companies has the higher degree of financial leverage? What does this imply?