Selected financial data for Bahama Bay and Caribbean Key are as follows:
($ in millions)
Bahama Bay
Caribbean Key
2024
2023
2024
2023
Total assets
$9,543
$9,462
$8,743
$8,782
Total liabilities
8,002
7,466
7,443
7,433
Total stockholders' equity
1,541
1,996
1,300
1,349
Sales revenue
$5,827
$12,799
Interest expense
186
147
Income tax expense
68
342
Net income
313
346
Required:
1-a. Calculate the debt to equity ratio for Bahama Bay and Caribbean Key for the most recent year.
1-b. Which company has the higher ratio?
2-a. Calculate the return on assets for Bahama Bay and Caribbean Key for the most recent year.
2-b. Which company appears more profitable?
3-a. Calculate the times interest earned ratio for Bahama Bay and Caribbean Key for the most recent year.
3-b. Which company is better able to meet interest payments as they become due?
Complete this question by entering your answers in the tabs below.
Req IA
Req IB
Req 2A
Req 2B
Req 3A
Req 3B