Directions: Conduct a thorough financial analysis of a company and a competitor in the manufacturing industry. You will perform ratio analysis based off of liquidity, solvency, and profitability ratios (for a two year period). Each group is to compare a companys ratios to the competitors ratios.

(KEY RATIOS: Current Ratio, Quick Ratio, Accounts Receivable Turnover, Inventory Turnover, Percentage of inventory as raw materials, work in process, and finished goods, Debt to Asset Ratio, Gross Profit Margin, Net Profit Margin)

You will research & discuss:

- The history of both companies

- The product types the companies produce and sell

- The dollar amount of Direct Materials, Work-in-Process, and Finished Goods Inventory.

- Anticipate fixed and variable costs that each company might have.

- Does either company use activity-based costing?

- Does either company have an ethics policy?

- Are there any legal issues affecting either company?

- Show the ratios that you have computed

- Report the findings of your comparative analysis

- Which company would you choose to invest in and why?

- prepare a PowerPoint presentation.

- Submit a page containing all of your ratio calculations

- Submit a works cited page.

Examples are listed at: http://www.industryweek.com/resources/iw50best/2016