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)) . Please respond to at least two of your peers.

Company A Company B

P/E Ratio: 30 P/E Ratio: 17

Price/Sales: 6 Price/Sales: 0.6

Price/Book Value of Equity: 7.5 Price/Book Value of Equity: 3

Profit Margin: 20% Profit Margin: 3%

Operating Margin: 25% Operating Margin: 5%

Return on Assets (ROA): 6% Return on Assets (ROA): 7%

Return On Equity (ROE): 25% Return On Equity (ROE): 15%

Current Ratio: 3 Current Ratio: 1