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As a potential investor, you decide to conduct a comprehensive financial analysis on your investment target, Nvidia Corporation ( NVDA ) . You collect its
As a potential investor, you decide to conduct a comprehensive financial analysis on your investment target, Nvidia Corporation NVDA You collect its latest financial information. The current stock price is $ per share, with the total of million shares outstanding. Its latest income statement shows the revenues of $ million, costs of $ million, operating expenses of $ million, interest expenses of $ million, and the net income of $ million. Its latest balance sheet shows the inventory of $ million, total current assets of $ million, total assets of $ million, total current liabilities of $ million, and total liabilities of $ million. Answer the following questions based on the information given.
a What is the companys markettobook ratio? The industry average markettobook ratio is Based on your finding and the industry average, do you find the stock overvalued or undervalued?
b Compute the companys net profit margin and return on assets ROA Assume the corporate tax rate of
c What is its inventory turnover ratio? On average, how long does an inventory sit in the company before it is sold?
d Compute the company's current ratio. Based on the current ratio, do you see any potential red flag on its liquidity? Why or why not?
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