Compute and Interpret Liquidity, Solvency and Coverage
Ratios
Selected balance sheet and income statement information for Calpine
Corporation for 2004 and 2006 follows.
($ millions) | 2004 | 2006 |
---|---|---|
Cash | $ 1,256.73 | $ 1,523.36 |
Accounts receivable | 1,097.16 | 735.30 |
Current assets | 3,313.56 | 3,268.33 |
Current liabilities | 3,285.39 | 6,057.95 |
Long-term debt | 17,150.81 | 3,531.63 |
Short-term debt | 1,033.96 | 4,568.83 |
Total liabilities | 22,898.42 | 25,503.17 |
Interest expense | 1,516.90 | 1,288.29 |
Capital expenditures | 1,545.48 | 211.50 |
Equity | 4,587.67 | (7,152.90) |
Cash from operations | 19.89 | 335.98 |
Earnings before interest and taxes | 1,659.84 | 1,907.84 |
(a) Compute the following liquidity, solvency and coverage ratios for both years. (Round your answers to two decimal places.)
2006 total debt-to-equity = Answer
2004 total debt-to-equity = Answer
Compute and interpret Liquidity,Solvency and Coverage Ratios
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