Question
Fill in the following information for the five non-financial companies of your choice. Company name ? Firm 2 Firm 3 Firm 4 Firm 5 Current
Fill in the following information for the five non-financial companies of your choice.
| Company name | ? | Firm 2 | Firm 3 | Firm 4 | Firm 5 | ||||
| Current Ratio | 0.97 |
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| Total Debt Ratio | 0.58 |
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| Asset Turnover | 2.38 |
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| Profit Margin | 3.1 |
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| Price to Earning | 14.1 |
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| Market to Book | 2.6 |
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| Closing Stock price (Sep 1st) | 250.33 |
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Please explain the ratios of the firms to the potential investors of these five stocks.(Use the structure of the textbook and compare them with the industry averages, if possible)
Short-term solvency or liquidity ratios: The current ratio is smaller than one, which is not that great.
Long-term solvency or financial leverage ratios: The total debt ratio is 0.58, which is in a good shape.
Asset management or turnover ratios: Asset turnover is 2.38. This is high. Walmart utilizes its assets well.
Profitability ratios:
Market value ratios: Both Market to Book and Price to earning ratios are below the industry averages. The stock is underpriced.
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Ethics In Finance
Authors: John R. Boatright
3rd Edition
1118615824, 978-1118615829
