59.2%
Shareholders' Equity 40.8% Total Liabilities and Shareholders' Equity 100.0% ====== [source: calculated from data in:
Mobil Corp., 1991]
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Ratio Analysis Summary: Mobil 1990
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Ratio Measure
Current 1.0:1.0
Quick 0.6:1.0
Net Profit Margin 5.2%
Pre tax Return on Assets 43.7%
Return on Capital (Equity plus Long Term Debt) 5.3%
Return on Shareholders' Equity 9.5%
Days Rates Outstanding 28.9 days
Inventory Turnover 10.8 times
Total Asset Turnover 1.6 times
[exhibit continued on the following page][exhibit continued from the preceding page]
Long Term Debt/Equity 42.1%
Times Interest Earned 1.1 times
Debt Service Coverage 0.3 times
[source: calculated from data in:
Mobil Corp., 1991]
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As the data presented in the exhibits indicate, Mobil is a financially sound firm. The capital structure of the company permits it to undertake massive development p...