find the company's financial statements and then compute the two ratios you decide to do. Then, compare your results to the industrial average ratios.

You can find the industrial average ratios at money msn (https://www.msn.com/en-us/money). Once you put into the company's symbol, under "Analysis" you can find profitability, price ratios, financial health, and management effectiveness. Based on the comparison, comment on whether the company outperforms or underperforms.

Example from professor

Ratios Example: Visa (V), ROE and Current Ratio

I like to compute two ratios for Visa Inc. First, I need to find its latest financial statements on msn money (under Financials) and compute the following two ratios I choose.

Return on Equity (2020) = NI / Equity = 10,475 million / 36,210 million = 28.93%

Current Ratio (2020) = Current Assets / Current Liabilities = 27,645 million / 14,510 million = 1.91

I compare the numbers to industry averages on msn money (under Analysis)

Visa's ROE of 28.93% > Industry Average ROE of 14.80% (under Analysis / Management Effectiveness)

Visa's Current Ratio of 1.91 > Industry Average Current Ratio of 1.80 (under Analysis / Financial Health)

Based on the ratios, Visa out-performed the market in terms of ROE and Current Ratio.