Are there any good argument on this?:

The three companies that I have been researching throughout this course have been Wal-Mart, Amazon, and Lending Tree.All three have been extremely successful in their different markets according to ratio financial analysis, horizontal analysis, and vertical analysis.

1. Which company is more liquid?

The data collected in the three companies financial documents has shown that Lending Tree is the most liquid company of the three.Lending Tree has a current ratio of 2.11, which is more than double of the other two companies.This means that Lending tree is more than capable of paying off its debt in the short run.Lending Tree also has the highest inventory turnover rate, so sales are high compared to the average inventory.The turnover rate is extremely high because the company doesn't sell traditional products like Amazon and Wal-Mart.

1. Which company has the strongest net income?

Lending Tree has the best net income because of the low operating costs and expenses due to the nature of their business.Since the main function of the company is to facilitate loans, it doesn't require much of an infrastructure.Having the ability to conduct business without the need for storefronts, distribution, and maintaining inventories allow for the best net income for the three organizations.

1. Which company has the strongest solvency?

Lending Tree has the strongest solvency due to low debt to equity ratio and debt to assets ratio.Having more assets compared to debt provides insight to whether a company can survive in the long-term financially and cover the liabilities.If a business has a high debt to equity ratio, then it would be considered a high-risk business.Debt to equity is based on a company's total liabilities compared to its stockholder's equity.These ratios can help determine if a firm is overextended and is capable of meeting financial goals in the future.

1. Which company is most profitable?

Wal-Mart is the most profitable on sales and has a solid return on its assets with a good net profit margin.They made 124.6 million dollars off of sales, which is drastically higher than Lending Tree and Amazon.This higher sales rate is due to Wal-Mart's ability to tap into multiple markets compared to the other companies only being in one market.Lending Tree may have the best net profit margin and a good return on assets but are still lacking in the gross profit on sales.

1. Which company would be the most solid financial investment? Why?

Lending Tree would be the best investment for the short-term while Amazon and Wal-Mart may be the best for a long-term investment.While Lending Tree shows some of the better financial numbers, they are susceptible to failure due to housing market outcomes from the effects of the total economic market.If another housing market crisis like the one that occurred in 2008 happened again, then the organization would have a high possibility of default or financial shortcomings.Wal-Mart and Amazon have been resilient through the ups and downs in the market and are still showing growth so they could be the best bet for long-term investment.

Reference

Argosy Classroom (2018). Retrieved March 28, 2018, from https://myclasses.argosy.edu/d2l/le/content/20162/viewContent/860533/View