1st picture is the question.

2nd picture shows the firm. Just need the explantions

explanation for each firm

Choose American forms Firm 2 Firm 3 Firm4 Firm 5 Firm 6 Company Firm 1 name Current Ratio Debt/Equity Ratio Turnover Profit Margin Price to Earning Market to Book Time interest earned Closing Stock price (Sep. 1st 2020) Please explain EACH of the ratios of EACH of the firms to the potential investors of these si stocks (Use the structure of the textbook and compare them with the industry averages, if possible) Short-term solvency or liquidity ratios Long-term solvency or financial leverage ratios Asset management or turnover ratios: Profitability ratios Market value ratios 5:36 PM 9/30/2020 BE a D E F G H 1 PEP 0.97 0.81 11% A B AMZN DNKN GM Current Ratio 1.18 1.60 D/E ratio 114.01% 29.15% Asset Turnover sales/total assets 1.25 0.35 Time Interest Earned=EBIT/interest 15.74 3.49 Profit Margin 4.10% 16.79% PE ratio 122.03 29.53 Market to Book (Price to Book) 21.57 N/A closing Stock Price (Sep 1st, 2020) 3499.12 76.18 2 3 Explanation of ratios of Amazon 5 Currenta ratio is larger than one so its liquidity is good. 6. De ratio is below 3. The long term solvency/leverage is not too high. The risk is limited, 8 Asset turnvoer 1.25 is high for a big company like AMAZON. 9. The textbook example says TAT is usually smaller than one. 20. This means AMAZON is good in utilizing its own assets. WMT HPQ 112 0.79 28.04% 21 58% 0.60 2.22 10.51 8.74 1.46% 3.30% 27.72 21.80 1.06 5.14 29.79 147.59 26.55% 0.86 9.20 10.13% 27.18 14.77 1.76 11.43 4.51% 10.20 N/A 19.26 139.19 Walmart has only 33% profit margin so Amazon's 4.1%5 not too low, The market value ratios: PE and MB are too high. Usually PE ratio is two digit and MB ratio is one digit Here for Amazon, PE is three digit and MB is two digit. They are too high. Amazon is over priced Sficeti 0 a N 199+ Type here to search Choose American forms Firm 2 Firm 3 Firm4 Firm 5 Firm 6 Company Firm 1 name Current Ratio Debt/Equity Ratio Turnover Profit Margin Price to Earning Market to Book Time interest earned Closing Stock price (Sep. 1st 2020) Please explain EACH of the ratios of EACH of the firms to the potential investors of these si stocks (Use the structure of the textbook and compare them with the industry averages, if possible) Short-term solvency or liquidity ratios Long-term solvency or financial leverage ratios Asset management or turnover ratios: Profitability ratios Market value ratios 5:36 PM 9/30/2020 BE a D E F G H 1 PEP 0.97 0.81 11% A B AMZN DNKN GM Current Ratio 1.18 1.60 D/E ratio 114.01% 29.15% Asset Turnover sales/total assets 1.25 0.35 Time Interest Earned=EBIT/interest 15.74 3.49 Profit Margin 4.10% 16.79% PE ratio 122.03 29.53 Market to Book (Price to Book) 21.57 N/A closing Stock Price (Sep 1st, 2020) 3499.12 76.18 2 3 Explanation of ratios of Amazon 5 Currenta ratio is larger than one so its liquidity is good. 6. De ratio is below 3. The long term solvency/leverage is not too high. The risk is limited, 8 Asset turnvoer 1.25 is high for a big company like AMAZON. 9. The textbook example says TAT is usually smaller than one. 20. This means AMAZON is good in utilizing its own assets. WMT HPQ 112 0.79 28.04% 21 58% 0.60 2.22 10.51 8.74 1.46% 3.30% 27.72 21.80 1.06 5.14 29.79 147.59 26.55% 0.86 9.20 10.13% 27.18 14.77 1.76 11.43 4.51% 10.20 N/A 19.26 139.19 Walmart has only 33% profit margin so Amazon's 4.1%5 not too low, The market value ratios: PE and MB are too high. Usually PE ratio is two digit and MB ratio is one digit Here for Amazon, PE is three digit and MB is two digit. They are too high. Amazon is over priced Sficeti 0 a N 199+ Type here to search