Question
Use financial internet websites specifically ( morningstar.com and google.com/finance) to ana;yze hewlett packard CO. Once on either websites you simply enter hewlett Packard's ticker symbol
Use financial internet websites specifically ( morningstar.com and google.com/finance) to ana;yze hewlett packard CO. Once on either websites you simply enter hewlett Packard's ticker symbol (HPQ) to obtain the financial information needed.
Trend analysis (where we evaluate changes in key ratios over time, and a peer analysis , where we compare financial ratios with firms that are in the same industry. We will do both type of Analysis in this type of problem.
DISCUSSION QUESTIONS.
1.) Looking at morningstar's financial health ratios , what has happened to hewelett packard liquidity position over the past 10 years.
2.) Looking at morning star's financial health ratios, what has happened to hewelett packards financial leverage position over past 10 years.
3.) Looking at morning star's profitability ratios, what has happened to hewelett packards profit margin ( net margin %) over the past 10 years. what has happened to its return on assets (ROA) and retuen on equity (ROE) over the past 10 years
4.) Identify google finance list of related companies to hewelett packard. which is the largest in terms of market capitilization. which is the smallest. Where does hawelett packard rank ( in terms of market capitalization)
5.From the google finance site, look at the hewelett packard liquidity position ( as measured by its current ratio). how does this ratio compare with those of its peers.
6.) From the google finance site, look at the hewelett packkard profitibility ratios ( as measured by its profit margin , ROA, and ROE). how does these ratio compare with those of its peers.
7.) From the google finance site , use the Dopont analysis to determine the total assets turnover ratio for each of the peer companies. ( hint : ROA = profit margin x total assets turnover. Once you have calculated each peers total assets turnover rario, then you can use the Dupont analysis to calculate each peer's equity multiplier.
8.) From the information gained in question 7 and using the Dupont analysis, what are hewelett packard's strenghts and weaknesses compared to those of its competitors.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
1 The best measure of liquidity is quick ratio as it only considers cash cash equivalent assets When we look at this ratio for past years we find that it has increased which is a good indicator So fro...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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