1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
OLEGan [10]
4 years ago
11

Your financial analyst calculated the following ratios for three companies: Boeing Microsoft PG&E Cash ratio 0.15 0.1 0.1 Cu

rrent ratio 1.3 2.5 0.8 Debt ratio 0.9 0.4 0.75 Profit margin 5% 28% 6% Evaluate the statement "Boeing is a riskier company than Microsoft and PG&E because of its higher debt ratio." Yes: A higher debt ratio of Boeing than that of PG&E is a sign of short-term illiquidity. Not necessarily: The debt ratios are not directly comparable, since each company is in a different industry. Yes: A higher debt ratio means that the company is less capable of paying interests.
Business
1 answer:
MaRussiya [10]4 years ago
7 0

Answer: Not necessarily: The debt ratios are not directly comparable, since each company is in a different industry.

Explanation:

We cannot authoritatively state that even though Boeing has such a high debt rate, that it is a riskier company than either Microsoft or PG&E. This is due to the drawback in ratio analysis of bias if compared across different industries.

Ratio analysis best works when comparing companies in the same industry because their situations will be similar. Comparing across industries can be misleading because different industries operate in different ways. In the Airplane manufacturing business for instance, having a high amount of debt due to having the tangible assets to back it up might be a normal thing.

The debt ratios are therefore not directly comparable because each company is in a different industry.

You might be interested in
When Jill was asked, she chose cars over stomach cancer as the cause of more U.S. deaths per year. When asked why she chose the
SOVA2 [1]

Answer:

C. availability.

Explanation:

The availability bias and misinterpretation is the result of increased frequency and omnipresence of information that does not reflect its importance or correctness.

Here, Jill is clouded by how much car deaths are propagated in the media, so she fails to realize the correct answer, despite the fact that stomach cancer could seem rational in her mind.

6 0
3 years ago
Fatima is a manager in charge of personnel. Today she will have to write up an employee for excessive tardiness. She knows the e
schepotkina [342]

Answer:Social Intelligence

Explanation:Social Intelligence (SI) is the ability to get along well with others, and to get them to cooperate with you.

Social intelligence according to the original definition of Edward Thorndike, is "the ability to understand and manage men and women, boys and girls, to act wisely in human relations" It is equivalent to interpersonal intelligence, one of the types of intelligences identified in Howard Gardner's Theory of multiple intelligences, and closely related to theory of mind.

4 0
4 years ago
(consider this) consumers might leave a fast-food restaurant without being served because:
Liula [17]
The reason why consumers leave without being served because the consumers must have felt mad or upset about the service being served to them-- causing them to leave their orders or to even wait for their time for their turn of having to get their menu taken.
4 0
4 years ago
Steven consumes only two goods, both of which are normal goods. He is currently maximizing his utility in consumption of both go
zzz [600]

Answer:

The answer is: remain the same

Explanation:

The marginal utility of a good or service is how much better we feel when consuming an extra unit of that good or service. For example if we are very thirsty, the marginal utility of consuming a can of Coke is very large, but once our thirst is quenched, an extra can of Coke will not provide use with that much satisfaction as before.

If the price of a substitute good increases, the marginal utility of the good whose price didn't change, will remain the same.

Let's go back to the Coke example. An extra can of Coke will give me 5 more satisfaction units (I'm assuming I can measure satisfaction) and an extra slice of pizza will give me 7 more units of satisfaction. If the price of Coke increases from 50 cents to $1, its marginal utility will decrease. I will buy more pizza because the satisfaction I get from drinking Coke is now smaller.

4 0
3 years ago
How much electricity does las vegas use in a day?
Schach [20]
I think the answer is about 5,200 to <span>5,600 megawatts but i think the max is 8,000 megawatts 

hope i helped you </span>
6 0
3 years ago
Read 2 more answers
Other questions:
  • ​DeShawn's Detailing is a service that details cars at the​ customers' homes or places of work.​ DeShawn's cost for a basic deta
    8·1 answer
  • Starting last December, one of the three major credit-score trackers, Experian, added paying monthly rent as one of its criteria
    12·1 answer
  • Which type of evidence serves to substantiate the distinct set of elements whose commission or omission must be demonstrated to
    7·1 answer
  • Many companies sell different types of cell phones. Some consumers prefer to use a specific brand because of its different kind
    7·2 answers
  • A project is rushed into design without a total understanding of the owner's needs. As the project moves through the design, add
    9·1 answer
  • Consternation Corporation has an agreement with its workers to index completely the wage of its employees using the CPI. Conster
    7·1 answer
  • The finished goods inventory on hand on December 31, 2018 was 21,000 units. It is the company's policy to maintain a finished go
    9·1 answer
  • Abby and Jason are building a new house. They obtained a construction loan of $100,000, which will be rolled over into a convent
    14·1 answer
  • 10. Ahron Company makes 8,000 units per year of a part it uses in the products it manufactures. The unit product cost of this pa
    8·1 answer
  • a finance jounral published a study of whether the decison to invest in the stock market is dependent on IQ
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!