Calculate the following ratios for you company and a competitor for two years. Present your calculations in a table.

Liquidity ratios:

Working Capital $=$ Current Assets $-$ Current Liabilities

Current Ratio $=$ Current Assets $-$: Current Liabilities

Inventory Turnover Ratio $=$ Cost of Goods Sold $-$: Average Inventory

Solvency ratios:

Debt$-$to$-$Equity Ratio $=$ Total Liabilities $-$: Stockholders' Equity

Profitability ratios:

Net Margin $($Profit Margin$)$ Ratio $=$ Net Income $-$: Net Sales

Gross Profit Ratio $=$ Gross Profit $-$: Net Sales

Asset Turnover Ratio $=$ Net Sales $-$: Average Total Assets

Return on Equity $=$ Net Income $-$: Average Total Stockholders' Equity

Stock market ratios:

Earnings per Share $=$ Net Earnings $-$: Average number of outstanding common shares

Price$/$Earnings $($P$/$E$)$ Ratio $=$ Market Price Per Share $-$: Earnings Per Share

Your ratio analysis should include one or two paragraphs discussing the performance of your company vs$.$ the competitor as shown by the $10$ ratios; discuss trends and meanings.

Summarize your analysis of the firm and comment as to whether or not it is a company in which you would invest. Why or why not? The summary and recommendations should be a minimum of three paragraphs detailing your overall evaluation of the company.

Do not shortchange this section. Your summary and conclusions are the most important part of the report! Be thorough!

Section $8-$ References

List the references used in preparing your report.

Section $9-$ Secondary Stock Market Activity

Include as an exhibit to your report the daily stock prices for the $60$ days preceding the date of your report. Comment on stock prices. In addition to listing the stock prices for $60-$days, create a graph to visually display the stock prices.