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Your class has been told that each student will receive a share of stock in one of three companies in the same industry. But
Your class has been told that each student will receive a share of stock in one of three companies in the same industry. But there's a catch: each student must decide which of the companies it wants to own stock in. To reach this decision, you will use ratio analysis to compare the three companies. You will analyze each of the companies using the ratios presented in this chapter. Then, you'll compare your. results, and choose a company. Here are the details of the project: Select a group of three companies in the same industry. Here are just a few examples: 1. 1. Auto manufacturers. Ford, General Motors, Toyota Drug companies. GlaxoSmith Kline, Eli Lilly & Co., Bristol-Myers Squibb Specialty retailers. Bed Bath & Beyond, Pottery Barn, Pier 1 Imports Computers. Hewlett-Packard, Apple, Dell Research a copy of each company's most recent annual report (which includes 2. 3. 4. its financial statements) from the company's website (investor section). Calculate the following ratios for the company for the last two years: gross profit margin, net profit margin, inventory turnover (if applicable), return on assets, current ratio, debt-to-equity, and interest coverage. Compare your results. Decide which company you want to own stock in Compare your results. Decide which company you want to own stock in. Write a report indicating the company selected and explain your choice. Attach the following items to your team report: 1. A brief explanation of each ratio (how to calculate it and what it means) 2. Detailed calculations showing how each ratio was determined 3. A chart comparing the ratios for the three companies
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The speculation alternatives chose for this situation are the Auto makers to be specific Ford General Motors Toyota Subsequent to doing money related proportion investigation the organization that I d...Get Instant Access to Expert-Tailored Solutions
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