Question
Ratio Research: Use the template to analyze the selected ratios (profitability, financial strength, valuation, management effectiveness, dividends, and efficiency) for both of the competitors. To
Ratio Research: Use the template to analyze the selected ratios (profitability, financial strength, valuation, management effectiveness, dividends, and efficiency) for both of the competitors. To complete this part, you can reference the Morningstar website in the Module Two resources to obtain the ratios. You can also use the SEC EDGAR Company Filings resource from Module One to obtain the ratio from annual reports. Please note: The ratios have to be from the same time period (the same year for both competitors). For training on how to use Excel, visit the Hoonuit training site or search YouTube to find appropriate Excel training videos. Industry Ratios: To analyze ratios for the companies, you also need to obtain the ratios for the industry that the competitors operate in. Industry values for the ratios can be found in the index column. If no index value is available, put the five-year averages for both companies in the industry column and use these figures for the industry comparison of your ratio analysis. Ratio Analysis: Compare the two companies based on their ratios. Use the last column in the template to write in detail how each company is doing based on the ratios. Compare the company ratios to the industry and each other
| RATIOS | Automotive | Autozone | O'Reily's | ANALYSIS |
| Profitability Ratios (%) | ||||
| Gross Margin | ||||
| EBITD Margin | ||||
| Operating Margin | ||||
| Pretax Margin | ||||
| Effective Tax Rate | ||||
| Financial Strength | ||||
| Quick Ratio | ||||
| Current Ratio | ||||
| LT Debt to Equity | ||||
| Total Debt to Equity | ||||
| Interest Coverage | ||||
| Valuation Ratios | ||||
| P/E Ratio | ||||
| Price to Sales (P/S) | ||||
| Price to Book (P/B) | ||||
| Price to Tangible Book | ||||
| Price to Cash Flow | ||||
| Price to Free Cash Flow | ||||
| Management Effectiveness (%) | ||||
| Return On Assets | ||||
| Return On Investment | ||||
| Return On Equity | ||||
| Dividends | ||||
| Dividend Yield | ||||
| Payout Ratio | ||||
| Efficiency | ||||
| Revenue/Employee | ||||
| Net Income/Employee | ||||
| Receivable Turnover | ||||
| Inventory Turnover | ||||
| Asset Turnover |
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Managerial Accounting An Integrative Approach
Authors: C J Mcnair Connoly, Kenneth Merchant
2nd Edition
099950049X, 978-0999500491
