LAB #3 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? Marks: 10 Time: 3 hours Net pronte marc Ne domin Grone profit Groee profit margin Revenue ROA Profit margin ratio x total cost turnover Net earnings + [Interest expense x (1 - Tax ratel] Sales revenue X Sales revenu Average total assets Net earning - Preferred dividende ROE Average common shareholders equity Short-Term Liquidity Ratios Current assets Current ratio Current liabilities Cash + Accounts recevable + Marketable securities Quick ratio Current liabilities Operating cash flow Operating cash flow to short-term dett Short-term debt and current maturities of long term debt Activity Ratios Credit sales Accounts receivable turnover Average accounts receivable Coat of goods sold Inventory Turnover Average Inventory Credit purchases Accounts payable Turnover Average accounts payable Solvency Ratios Del tot Seholders uity Totalbes Debt to total is intested Na earnings Taxes Testeros Operating cartator Operating Total Laity Analysis Ratio pers Hele din Wording Page 4 / 4 + LAB #3 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? Marks: 10 Time: 3 hours Net pronte marc Ne domin Grone profit Groee profit margin Revenue ROA Profit margin ratio x total cost turnover Net earnings + [Interest expense x (1 - Tax ratel] Sales revenue X Sales revenu Average total assets Net earning - Preferred dividende ROE Average common shareholders equity Short-Term Liquidity Ratios Current assets Current ratio Current liabilities Cash + Accounts recevable + Marketable securities Quick ratio Current liabilities Operating cash flow Operating cash flow to short-term dett Short-term debt and current maturities of long term debt Activity Ratios Credit sales Accounts receivable turnover Average accounts receivable Coat of goods sold Inventory Turnover Average Inventory Credit purchases Accounts payable Turnover Average accounts payable Solvency Ratios Del tot Seholders uity Totalbes Debt to total is intested Na earnings Taxes Testeros Operating cartator Operating Total Laity Analysis Ratio pers Hele din Wording Page 4 / 4 +
