Question
1. Pick two publicly traded companies in the same industry. 2. Calculate the ratios from your textbook or any other ratios you deem necessary for
1. Pick two publicly traded companies in the same industry.
2. Calculate the ratios from your textbook or any other ratios you deem necessary for each company for two years. Some examples are working capital, current ratio, current cash debt coverage ratio, inventory turnover ratio, days in inventory, receivables turnover ratio, average collection period, debt to asset ratio, cash debt coverage ratio, times interest earned ratio, free cash flow, earnings per share, price earnings ratio, gross profit rate, profit margin ratio, return on assets, return on equity, payout ratio, asset turnover ratio
3. Write a analysis on which company you would buy stock in and why. Be sure to use all the ratios calculated in item 2 in your analysis if not other ratios.
4. Turn in ratios, financial statements, and paper
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