Hello Frankihmani

Could you please do the same work that you did it before, but now i want the ratios for 2014 and 2015 for each company. Please use the same companies

I need help in my homework, please follow the instructor below

1- choose two different sectors Ex: technology , finance, retail .... etc

2- select two companies from each sector that you had chosen. so you will have total of 4 companies

3- calculate thecurrent ratio, quick ratio ,Cash Conversion Efficiency andCash Conversion Period for each company for 2014 and 2015.

4- analyze and compare every two company in the same sector together

Please i want all formulas and all the financial statements for all companies so i can know how you calculate the ratios.

Note: i attached your work before

Ratio Analysis Company/ Ratio Wal-Mart Stores Home Depot General Motors Ford Motors Current ratio 0.93 1.36 1.09 7.18 Quick ratio 0.22 0.33 0.70 6.77 Cash conversion 0.06 efficiency 0.11 0.08 0.11 Cash conversion -10.05 period 16.68 -20.02 213.38 Workings Current ratio = current assets/current liabilities Quick ratio = {Cash + Marketable securities + Accounts receivable}/ current liabilities Cash conversion efficiency = cash flow from operations/ sales The cash conversion period is also known as cash conversion cycle calculated as follows: Cash conversion cycle = Days inventory outstanding + Days sales outstanding - Days payable outstanding Days inventory outstanding = (Inventory/ cost of sales) * 365 Days sales outstanding = (Accounts receivable/ net credit sales) * 365 Days payable outstanding = (Accounts payable/ cost of sales) * 365 Ratio Analysis 1. Wal-Mart Current ratio = 60,239,000,000/ 64,619,000,000 = 0.93 Quick ratio = {8,705,000,000 + 5,624,000,000}/ 64,619,000,000 = 0.22 Cash conversion efficiency = 27,389,000,000/ 482,130,000,000 = 0.06 Days inventory outstanding = (44,469,000,000/ 360,984,000,000) * 365 = 44.96 Days sales outstanding = (5,624,000,000/ 482,130,000,000) * 365 = 4.26 Days payable outstanding = (58,615,000,000/ 360,984,000,000) * 365 = 59.27 Cash conversion cycle = 44.96 + 4.26 - 59.27 = -10.05 2. Home Depot Current ratio = 16,993,000,000/ 12,526,000,000 = 1.36 Quick ratio = {2,216,000,000 + 1,890,000,000}/ 12,526,000,000 = 0.33 Cash conversion efficiency = 9,373,000,000/ 88,519,000,000 = 0.11 Days inventory outstanding = (11,809,000,000/ 58,254,000,000) * 365 = 73.99 Days sales outstanding = (1,890,000,000/ 88,519,000,000) * 365 = 7.79 Days payable outstanding = (10,533,000,000/ 58,254,000,000) * 365 = 65.10 Ratio Analysis Cash conversion cycle = 73.99 + 7.79 - 65.10 = 16.68 3. General Motors Current ratio = 78,007,000,000/ 71,466,000,000 = 1.09 Quick ratio = {6,828,000,000 + 8,163,000,000 + 34,987,000,000}/ 71,466,000,000 = 0.70 Cash conversion efficiency = 11,978,000,000/ 152,356,000,000 = 0.08 Days inventory outstanding = (13,764,000,000/ 134,054,000,000) * 365 = 37.48 Days sales outstanding = (34,987,000,000/ 152,356,000,000) * 365 = 83.82 Days payable outstanding = (51,904,000,000/ 134,054,000,000) * 365 = 141.32 Cash conversion cycle = 37.48 + 83.82 - 141.32 = -20.02 4. Ford Motors Current ratio = 145,470,000,000/ 20,272,000,000 = 7.18 Quick ratio = {14,272,000,000 + 20,904,000,000 + 101,975,000,000}/ 20,272,000,000 = 6.77 Cash conversion efficiency = 16,170,000,000/ 149,558,000,000 = 0.11 Days inventory outstanding = (8,319,000,000/ 126,495,000,000) * 365 = 24.00 Days sales outstanding = 101,975,000,000/ 149,558,000,000) * 365 = 248.87 Ratio Analysis Days payable outstanding = 20,272,000,000/ 126,495,000,000) * 365 = 58.49 Cash conversion cycle = 24.00 + 248.87 - 58.49 = 213.38 Analysis Current ratio This ratio measures a company's ability to settle its short term using the current assets This information is used by investors to gauge the financial health of a company. A high ratio would indicate that the company is able to settle its current liabilities using current assets without running into financial problems. Home Depot has a higher current ratio compared to Wal-Mart indicating that its ability to settle current liabilities is also higher. Ford Motors has a current ratio of 7.18 indicating that its current assets are more than seven times its current liabilities. This is a very good indicator of financial health compared to General Motors' 1.09. Quick ratio This ratio measures the company's ability to settle current liabilities using quick assets only. These are assets that can be quickly converted to cash. Again, a higher ratio is a good indicator of financial health. Home Depot and Ford Motors have higher quick ratios compared to their counterparts. Cash conversion efficiency measures how quickly sales are converted to cash. A lower figure figure is preferred as it indicates that sales are converter to cash quickly Cash conversion Period Ratio Analysis Also known as the cash cycle, it is a measure used to determine the number of days between when the business pays for its inventory and when it receives cash from its credit customers. A smaller figure is preferred with negative figures being even more desirable. This is because getting small or negative CCC means that cash is tied up in inventory for shorter periods of time. The time between which inventory is bought, sold and cash received is small. Walmart has a negative cash conversion cycle indicating that the company does not pay for its inventory until after the said inventory has been sold. Home Depot cash cycle is 16.68 days which is a relatively good indicator. General Motors also has negative cash cycle which is a good indicator. However, Ford Motors has a very high cash cycle indicating that it takes 218.38 days to convert inventory to cash, a not so good indicator. Overall, three ratios indicate that both Home Depot and Ford Motors are performing better than their counterparts. Links to financial statements https://finance.yahoo.com/quote/WMT/financials?p=WMT https://finance.yahoo.com/quote/HD/financials?p=HD https://finance.yahoo.com/quote/GM/financials?p=GM https://finance.yahoo.com/quote/f/financials?ltr=1 Ratio Analysis