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Company X Company Y YEAR 2020 YEAR 2020 000 000 Total Current Asset 1,403,085 277,448.119 Total Current Liabilities 823,669 215,818.641 Opening Inventory 822,555 140,186.570 Closing

Company X Company Y
YEAR 2020 YEAR 2020
000 000
Total Current Asset 1,403,085 277,448.119
Total Current Liabilities 823,669 215,818.641
Opening Inventory 822,555 140,186.570
Closing Inventory 868,055 152,371.841
Net Income 21,860 145,055.115
Shareholders Equity 3,276,471 543,544.889
After Tax Interrest 38,067 17,330.990
Total Capitalization 4,739,195 777,697.601
Market Capitalization 3,406,540,397 3,672,000.000
Revenue 2,879,205 1,388,706.434
Total Asset 5,562,864 993,516.242
Total Liabilities 2,286,393 449,971.353
COS 1,953,157 1,014,335.047
Long term Debt 1,462,724 234,152.712
Total Debt 2,286,393 449,971.353
Book Value of Equity 3,276,471 543,544.889
Operating Income 80,567 198,410.101
Sales 2,879,205 1,388,706.434
Book value of invested capital 26,510,042 27,000.000
CROSS SECTIONAL ANALYSIS Company X for year 2020 Company Y for year 2020
PROFITABILITY RATIO
ROE 0.67% 26.69%
Net Margin 0.76% 10.45%

Use the information above to analyze the ROE and Net Margin for Company X and Y. Do not merely state that the company is performing better or worse than its peer. Give possible reasons what might have caused the company to perform better or worse than its peer.

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