Complete one paragraph profiling each company’s business including
information, such as a brief history, where they are located, number of
employees, the products they sell, etc. Please reference any websites
you used for the Profiles on the Bibliography tab.
Use this Excel spreadsheet to compute ratios; show your computations
for all ratios on this tab and also include your commentary.
The financial statements used to calculate these ratios are available in Appendix A and Appendix B of your textbook.
Earnings per Share of Common Stock (basic – common)
Gross Profit Margin
Rate of Return (Net Profit Margin) on Sales
Days’ inventory outstanding (DIO)
Accounts Receivable Turnover
Days’ sales outstanding (DSO)
Rate of Return on Total Assets (ROA)
Rate of Return on Common Stockholders’ Equity (ROE)
Free cash flow
Price/Earnings Ratio (Multiple)
(please see the instructions for the dates to use for this ratio)
You all get the chance to play the role of financial analyst below.
The summary should be a comparison of each company’s performance for
each major category of ratios (liquidity, solvency, and profitability)
listed below. Focus on major differences as you compare each company’s
performance. A nice way to conclude is to state which company you feel
is the better investment and why.