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Unformatted text preview: 3.46 Debt to Assets 30,597,000/22,348,000 = 1.37 29,136,000/21,745,000 = 1.33 Current 22,348,000/30,597,000 = .73 21,745,000/29,136,000 = .74 I believe all of the ratios are important. I chose these ratios because I believe profitability and debt ratios give us the best insight into a companys financial health. Profitability ratios show how much the company has earned and the profits made on sales. The higher the percentage the more profit. As we can see from my calculations Verizons profitability ratios dropped slightly. This means there was a slight drop in from 2009 to 2010. We can also see from the debt ratios that the debt to equity and debt to assets has increased slightly. This tells us that Verizons capacity to engage in additional borrowing has dropped. The current ratio tells us that Verizons capability to cover short-term debt has lowered from 2009 to 2010....
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This note was uploaded on 02/16/2012 for the course ACCOUNTING ACC561 taught by Professor Jardine during the Spring '12 term at University of Phoenix.
- Spring '12