Internet Exercises

Chapter Eighteen:

www: IE18-24 Computing Financial Ratios Toys "R" Us is a worldwide toy retailer whose web home page is located at www.tru.com. Like most companies, its most recent annual report can be accessed from its home page.

Compute the following financial ratios for Toys "R" Us for the most recent year:

1.      Return on total assets

2.      Current ratio

3.      Acid-test (quick) ratio

4.      Inventory turnover

5.      Average sale period

6.      Times interest earned Debt-to-equity ratio

IE18-25 Comparing Financial Ratios Sears, Roebuck and Co. has its web home page at www.sears.com. The company's recent annual reports can be accessed from this web site.

Compute the following financial ratios for Sears for the two most recent years and indicate whether each ratio has improved or deteriorated.

1.      Return on total assets

2.      Current ratio

3.      Acid-test (quick) ratio

4.      Inventory turnover

5.      Average sale period

6.      Times interest earned

7.      Debt-to-equity ratio

2. Based on your analysis above, can you conclude anything about the performance of Sears over the past year?