Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Follow the steps below to analyze the financial health of two competitors. Use the Module Two Activity Template to complete this task. Select two companies

Follow the steps below to analyze the financial health of two competitors. Use the Module Two Activity Template to complete this task. Select two companies operating in the same industry (for example, Macys and Dillards). The companies have to be in the same business for the ratios to be valuable to your analysis. Then, complete the template, providing the following: Ratio Research: Use the template to analyze the selected ratios (profitability, financial strength, valuation, management effectiveness, dividends, and efficiency) for both of the competitors. To complete this part, you can reference the Morningstar website in the Module Two resources to obtain the ratios. You can also use the SEC EDGAR Company Filings resource from Module One to obtain the ratio from annual reports. Please note: The ratios have to be from the same time period (the same year for both competitors). For training on how to use Excel, visit the Hoonuit training site or search YouTube to find appropriate Excel training videos. Industry Ratios: To analyze ratios for the companies, you also need to obtain the ratios for the industry that the competitors operate in. Industry values for the ratios can be found in the index column. If no index value is available, put the five-year averages for both companies in the industry column and use these figures for the industry comparison of your ratio analysis. Ratio Analysis: Compare the two companies based on their ratios. Use the last column in the template to write in detail how each company is doing based on the ratios. Compare the company ratios to the industry and each other. Summary: This short write-up should be done directly in your Excel spreadsheet. o What is a ratio analysis? Briefly explain in about one paragraph. Please quote your resource. o Referring to the ratio analysis, in which company would you be willing to invest and why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sport Finance

Authors: Gil Fried, Steven Shapiro, Timothy D. Deschriver

2nd Edition

0736067701, 978-0736067706

More Books

Students also viewed these Finance questions

Question

What committees does the person serve on?

Answered: 1 week ago