Financial Analysis (due by Thersday 05/04/2023): You will use the Financial Statements for AGCO and John Deere as provided on their websites to complete the following analysis: 1. Calculate the current ratio and quick ratio for both companies for 2019 and 2020. Write a paragraph describing what these ratios indicate about the liquidity of AGCO and John Deere in 2020 compared to 2019. Write a paragraph describing what these ratios indicate about the liquidity of AGCO compared to John Deere for both years. Which company seems to be more liquid? What are the advantages and disadvantages of liquidity? 2. Calculate the accounts receivable turnover and days sales in receivables for both companies for 2019 and 2020. Write a paragraph comparing 2019 with 2020 and AGCO with John Deere using these two ratios to indicate the effectiveness of their accounts receivable collection. Which of the two seems to be doing a better job with receivables? How does this collection process affect the overall success of the company. 3. Calculate inventory turnover and days in inventory for both companies for 2019 and 2020. Write a paragraph comparing 2019 with 2020 and AGCO with John Deere using these two ratios to indicate how they manage their inventory. Which one of the two companies has a better approach to inventory management? Why? What are the problems that come with poor inventory management? 4. Calculate the gross margin, profit margin and return on investment for both companies for 2019 and 2020. Explain in a paragraph what these ratios show about each company's profitability compared to the year before and compared to each other. Indicate which company shows the best prospects for future profits and explain in detail why you think the ratios support your observation. 5. Compare John Deere's income statement for 2019 with their income statement for 2020 - calculate the change in dollars and percent for all of the revenues and expenses. What do the changes indicate about John Deere's success in 2019 relative to 2020? Do the same comparison for AGCO's income statement. What do the changes indicate about AGCO's improvement or lack thereof between 2019 and 2020? With this comparison of both companies over time now compare AGCO vs. John Deere and explain why one company is better than the other. 6. Based on all of your calculations and observations described above, make a recommendation as to which company would be a better investment. Give the reasons for your conclusion. Financial Analysis (due by Thersday 05/04/2023): You will use the Financial Statements for AGCO and John Deere as provided on their websites to complete the following analysis: 1. Calculate the current ratio and quick ratio for both companies for 2019 and 2020. Write a paragraph describing what these ratios indicate about the liquidity of AGCO and John Deere in 2020 compared to 2019. Write a paragraph describing what these ratios indicate about the liquidity of AGCO compared to John Deere for both years. Which company seems to be more liquid? What are the advantages and disadvantages of liquidity? 2. Calculate the accounts receivable turnover and days sales in receivables for both companies for 2019 and 2020. Write a paragraph comparing 2019 with 2020 and AGCO with John Deere using these two ratios to indicate the effectiveness of their accounts receivable collection. Which of the two seems to be doing a better job with receivables? How does this collection process affect the overall success of the company. 3. Calculate inventory turnover and days in inventory for both companies for 2019 and 2020. Write a paragraph comparing 2019 with 2020 and AGCO with John Deere using these two ratios to indicate how they manage their inventory. Which one of the two companies has a better approach to inventory management? Why? What are the problems that come with poor inventory management? 4. Calculate the gross margin, profit margin and return on investment for both companies for 2019 and 2020. Explain in a paragraph what these ratios show about each company's profitability compared to the year before and compared to each other. Indicate which company shows the best prospects for future profits and explain in detail why you think the ratios support your observation. 5. Compare John Deere's income statement for 2019 with their income statement for 2020 - calculate the change in dollars and percent for all of the revenues and expenses. What do the changes indicate about John Deere's success in 2019 relative to 2020? Do the same comparison for AGCO's income statement. What do the changes indicate about AGCO's improvement or lack thereof between 2019 and 2020? With this comparison of both companies over time now compare AGCO vs. John Deere and explain why one company is better than the other. 6. Based on all of your calculations and observations described above, make a recommendation as to which company would be a better investment. Give the reasons for your conclusion
