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Hello, I am working on a project involving short term Solvency for two different companies. I have chosen to Analyze Starbucks as my main company,
Hello, I am working on a project involving short term Solvency for two different companies. I have chosen to Analyze Starbucks as my main company, & Peet's Coffee as their competitor.I had a question about what ratios short term solvency entails? What are the specific ratios I need to solve? How do I find short term solvency? My professor would like the solvency for three years, so does that mean I need to do it three times?
In week one you find a company that you are interested in. This week, the task is to analyze your company's three-year annual Short-term Solvency (time-series analysis). Then, find a competitor of your company and analyze its three-year Short-term Solvency (cross-sectional analysis). For example, if my company is NIKE. The first part is to analyze NIKE's recently three years (2017-2019) Short-term Solvency ratios and see whether the ratios improve or worsen over the three year period. The second part is to analyze its competitor, which I can choose Adidas. I will first calculate Adidas's the same three-year annual Short-term Solvency ratios and then compare Nike's ratios with Adidas's ratio to see which company performs well
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