Pick one of the lists of companies listed and find two companies are competitors and prepare these ratios for all three side by side discussing in a short write up any major variances between the companies you note. Then after this has been completed you will do a short write up as to whether you would recommend a Buy, Hold or Sell recommendation and the reasons why based on your brief analytical evaluation. ACNB Corp. - Symbol ACNB COCA-COLA Company - Symbol KO Southside Bankshares Inc. - Symbol SBSI Verizon Commnications - Symbol VZ Westrock Company - Symbol WRK Flowers Foods Inc. - Symbol FLO AES Corp. - Symbol AES Bloom Energy Corp. - Symbol BE CISCO Systems, Inc. - Symbol CSCO Dominion Energy Inc. - Symbol - D Dow Inc. - Symbol DOW General Dynamics Corp. - Symbol GD HollyFrontier Corp. - Symbol HFC Paramond Global - Symbol PARA Pfizer Incorporated - Symbol PFE Rocket Companies Inc. - Symbol RKT Safety Insurance Group - Symbol SAFT Sysco Corporation - Symbol SYY Kroger Company - Symbol KR Vale Industries - Symbol VALE

• Liquidity Ratios that are financial ratios that measure a companys ability to repay both short- and long-term obligations. Common liquidity ratios include the following:
  • The current ratio measures a companys ability to pay off short-term liabilities with current assets:
    • Current ratio = Current assets / Current liabilities
  • The acid-test ratio measures a companys ability to pay off short-term liabilities with quick assets:
    • Acid-test ratio = Current assets Inventories / Current liabilities
  • The cash ratio measures a companys ability to pay off short-term liabilities with cash and cash equivalents:
    • Cash ratio = Cash and Cash equivalents / Current Liabilities
  • The operating cash flow ratio is a measure of the number of times a company can pay off current liabilities with the cash generated in a given period:
    • Operating cash flow ratio = Operating cash flow / Current liabilities
• Leverage Financial Ratios that measure the amount of capital that comes from debt. In other words, leverage financial ratios are used to evaluate a companys debt levels. Common leverage ratios include the following:
  • The debt ratio measures the relative amount of a companys assets that are provided from debt:
    • Debt ratio = Total liabilities / Total assets
  • The debt-to-equity ratio calculates the weight of total debt and financial liabilities against shareholders equity:
    • Debt to equity ratio = Total liabilities / Shareholders equity
  • The interest coverage ratio shows how easily a company can pay its interest expenses:
    • Interest coverage ratio = Operating income / Interest expenses
  • The debt service coverage ratio reveals how easily a company can pay its debt obligations:
    • Debt service coverage ratio = Operating income / Total debt service
• Efficiency Ratios are also known as activity financial ratios, are used to measure how well a company is utilizing its assets and resources. Common efficiency ratios include:
  • The asset turnover ratio measures a companys ability to generate sales from assets:
    • Asset turnover ratio = Net sales / Average total assets
  • The inventory turnover ratio measures how many times a companys inventory is sold and replaced over a given period:
    • Inventory turnover ratio = Cost of goods sold / Average inventory
  • The accounts receivable turnover ratio measures how many times a company can turn receivables into cash over a given period:
    • Receivables turnover ratio = Net credit sales / Average accounts receivable
  • The days sales in inventory ratio measures the average number of days that a company holds on to inventory before selling it to customers:
    • Days sales in inventory ratio = 365 days / Inventory turnover ratio
• Profitability Ratios are used to measure a companys ability to generate income relative to revenue, balance sheet assets, operating costs, and equity. Common profitability financial ratios include the following:
  • The gross margin ratio compares the gross profit of a company to its net sales to show how much profit a company makes after paying its cost of goods sold:
    • Gross margin ratio = Gross profit / Net sales
  • The operating margin ratio compares the operating income of a company to its net sales to determine operating efficiency:
    • Operating margin ratio = Operating income / Net sales
  • The return on assets ratio measures how efficiently a company is using its assets to generate profit:
    • Return on assets ratio = Net income / Total assets
  • The return on equity ratio measures how efficiently a company is using its equity to generate profit:
    • Return on equity ratio = Net income / Shareholders equity
• Market Value Ratios are used to evaluate the share price of a companys stock. Common market value ratios include the following:
  • The book value per share ratio calculates the per-share value of a company based on the equity available to shareholders:
    • Book value per share ratio = (Shareholders equity Preferred equity) / Total common shares outstanding
  • The dividend yield ratio measures the amount of dividends attributed to shareholders relative to the market value per share:
    • Dividend yield ratio = Dividend per share / Share price
  • The earnings per share ratio measures the amount of net income earned for each share outstanding:
    • Earnings per share ratio = Net earnings / Total shares outstanding
  • The price-earnings ratio compares a companys share price to its earnings per share:
    • Price-earnings ratio = Share price / Earnings per share