Purpose: To employ comparative data and industry data to evaluate a company’s performance and financial position.

Address: http://www.investor.reuters.com (or go to www.wiley.com/college/kimmel)

Steps

(1) Identify two competing companies.

(2) Go to the above address.

(3) Type in the first company’s name.

(4) Choose Ratios.

(5) Print out the results.

(6) Repeat steps 3-5 for the competitor.

Instructions

(a) Evaluate the company’s liquidity relative to the industry averages and to the competitor that you chose.

(b) Evaluate the company’s solvency relative to the industry averages and to the competitor that you chose.

(c) Evaluate the company’s profitability relative to the industry averages and to the competitor that you chose.

DECISION MAKING ACROSS THE ORGANIZATION