Stanley Black & Decker, Inc. (SBD) was founded in 1843. Its 2018 annual report states that “the Company is a diversified global provider of hand tools, power tools and related accessories, engineered fastening systems and products, services and equipment for oil & gas and infrastructure applications, commercial electronic security and monitoring systems, healthcare solutions, and mechanical access solutions (primarily automatic doors).” The following data were taken from the company’s 2018 annual report. Dollar amounts are in millions.
Required
a. Compute SBD’s current ratios for 2018 and 2017.
b. Compute SBD’s debt-to-assets ratios for 2018 and 2017.
c. Based on the ratios computed in Requirements a and b, did SBD’s liquidity get better or worse from 2017 to 2018?
d. Based on the ratios computed in Requirements a and b, did SBD’s solvency get better or worse from 2017 to 2018?
