Ratio Analysis Case

Select two publicly traded companies in the same industry. Please analyze the two companies and give your recommendations by answering the questions on the following pages.

Attach any relevant financial information, data, ratios.

Questions:

1. If you were a lender, which of these two companies would you feel most comfortable lending money to (assuming you could only lend to one of them)? Why? (Show several ratios/trends/other pieces of data that back up your position.)
2. What is your primary concern as a lender? How has this influenced your choice of analytical tools by which to judge the two companies?
3. Is there anything else that might be worth considering that you do not have the data for?
4. If you were an investor, which of these two companies would you feel most comfortable buying stock in, assuming you could only buy one of them? Why? (Show several ratios/trends/other pieces of data that back up your position.)
5. What is your primary concern as an investor? How has this influenced your choice of analytical tools by which to judge the two companies?
6. Is there anything else that might be worth considering that you do not have the data for?
7. Look at these two companies from the viewpoint of a chief financial officer (CFO). Which company do you feel is in better shape, from the standpoint of a manager? Keep in mind the industry in which you compete. Why? (Show several ratios/trends/other pieces of data that back up your position.)
8. What is your primary concern as a CFO? How has this influenced your choice of analytical tools by which to judge the two companies?
9. Is there anything else that might be worth considering that you do not have the data for?