Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need answer of this question for nike and tjx In groups of 5, select two publically traded companies on stock exchange (e.g. TSX, New

i need answer of this question for nike and tjx
image text in transcribed
image text in transcribed
In groups of 5, select two publically traded companies on stock exchange (e.g. TSX, New York) These companies must be in the same industry and you need to get approval before you can start the "task. Task: Using the 5 different type of financial formulas, compare the two companies and write a paragraph per formula explaining which one in your opinion is the best to invest money into? ROE Profitability Ratios Net profit margin Net earnings Revenues Gross profit margin-Gross profit Revenues ROA - Profit margin ratio x total asset turnover Net earnings + [Interest expense x (1 -- Tax rate)] Sales revenue Sales revenue Average total assets Net earnings - Preferred dividends Average common shareholders' equity Short-Term Liquidity Ratios Current assets Current ratio Current liabilities Quick ratio-Cash + Accounts receivable + Marketable securities Current liabilities Operating cash flow Operating cash flow to short-term debt Short-term debt and current maturities of long-term debt Activity Ratios Accounts receivable turnover Credit sales Average accounts receivable Inventory turnover Cost of goods sold Average inventory Accounts payable turnover Credit purchases Average accounts payable Solvency Ratios Debt to equity Total liabilities Shareholders' equity Debt to total assets Total liabilities Total assets Times interest earned - Net earnings + Taxes + Interest Interest Operating cash flow to total debt - Operating cash flow Total debt Equity Analysis Ratios Basic earnings per share - Weighted average number of common shares outstanding Net earnings - Preferred dividends Price/earnings ratio = Stock market share price Earnings per share In groups of 5, select two publically traded companies on stock exchange (e.g. TSX, New York) These companies must be in the same industry and you need to get approval before you can start the "task. Task: Using the 5 different type of financial formulas, compare the two companies and write a paragraph per formula explaining which one in your opinion is the best to invest money into? ROE Profitability Ratios Net profit margin Net earnings Revenues Gross profit margin-Gross profit Revenues ROA - Profit margin ratio x total asset turnover Net earnings + [Interest expense x (1 -- Tax rate)] Sales revenue Sales revenue Average total assets Net earnings - Preferred dividends Average common shareholders' equity Short-Term Liquidity Ratios Current assets Current ratio Current liabilities Quick ratio-Cash + Accounts receivable + Marketable securities Current liabilities Operating cash flow Operating cash flow to short-term debt Short-term debt and current maturities of long-term debt Activity Ratios Accounts receivable turnover Credit sales Average accounts receivable Inventory turnover Cost of goods sold Average inventory Accounts payable turnover Credit purchases Average accounts payable Solvency Ratios Debt to equity Total liabilities Shareholders' equity Debt to total assets Total liabilities Total assets Times interest earned - Net earnings + Taxes + Interest Interest Operating cash flow to total debt - Operating cash flow Total debt Equity Analysis Ratios Basic earnings per share - Weighted average number of common shares outstanding Net earnings - Preferred dividends Price/earnings ratio = Stock market share price Earnings per share

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_2

Step: 3

blur-text-image_3

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

Shape Up Your Finances

Authors: Ian Birt

2nd Edition

1925716422, 978-1925716429

More Books

Students also viewed these Finance questions

Question

Define time value of money.

Answered: 1 week ago