Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please take a look below at the two companies' financial ratios. Use the material your learned in the chapter to try and identify the industries

Please take a look below at the two companies' financial ratios. Use the material your learned in the chapter to try and identify the industries these two companies operate in. You are going to be graded on the quality of your analysis and arguments (e.g. this ratio indicates that... and that ratio indicates the other,... and taken together these ratios indicate that.... (and so forth)) :

Company A Company B

P/E Ratio: 30

Price/Sales: 6

Price/Book Value of Equity: 7.5

Profit Margin: 20%

Operating Margin: 25%

Return on Assets (ROA): 6%

Return On Equity (ROE): 25%

Current Ratio: 3

P/E Ratio: 17

Price/Sales: 0.6

Price/Book Value of Equity: 3

Profit Margin: 3%

Operating Margin: 5%

Return on Assets (ROA): 7%

Return On Equity (ROE): 15%

Current Ratio: 1

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

Intermediate Financial Management

Authors: Eugene BrighamPhillip Daves

1st Edition

0324594712, 9780324594713

More Books

Students also viewed these Finance questions