ATC 9-5 Business Applications Case Performing Ratio Analysis Using Real-World Data
Advanced Micro Devices, Inc. (AMD) is “a global semiconductor company with facilities around the world.” AMD began operations in 1969. Texas Instruments, Inc. is the company that invented the integrated circuit over 45 years ago. It has more than 100,000 customers in over 30 countries. The following data were taken from the companies’ 2016 annual reports. Dollar amounts are in millions.
| Advanced Micro Devices | Texas Instruments | |
|---|---|---|
| Current assets | $2,530 | $7,457 |
| Current liabilities | $1,346 | $2,264 |
| Total assets | $3,321 | $16,431 |
| Total liabilities | $2,905 | $5,958 |
Required
a. Compute the current ratio for each company.
b. Compute the debt-to-assets ratio for each company.
c. Based on the ratios computed in Requirements a and b, which company had the better liquidity in 2016?
d. Based on the ratios computed in Requirements a and b, which company had the better solvency in 2016?
Dr. Eve Carter PhD, Applied Mathematics
Senior lecturer at University. 12+ years tutoring algebra and calculus..
Senior lecturer at University. 12+ years tutoring algebra and calculus..
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