Question
based on the following data, tell me what you know about the following 2 companies. The two companies are competitors in the same industry. What
based on the following data, tell me what you know about the following 2 companies. The two companies are competitors in the same industry. What else would you need to know to improve your understanding of the companies? Make sure you articulate the assumptions you use to reach your decision about the 2 companies.
Company A:
net sales=$100,000
Gross profit margin ratio= 35%
Operating profit margin= 20%
net profit margin ratio= 10%
current ratio= 2.5
current ratio= 1.25
Company B:
net sales=$100,000
Gross profit margin ratio= 40%
Operating profit margin= 20%
net profit margin ratio= 7%
current ratio= 3.25
current ratio= 1.25
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