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Select the 10 financial ratios for a 3-year period then compare six (6) common ratios between two other groups. 1) Based on these ratios, which

Select the 10 financial ratios for a 3-year period then compare six (6) common ratios between two other groups.

1) Based on these ratios, which is the stronger company and why?

Company A Company B Company C
Ratio 2016 2017 2018 2016 2017 2018 2016 2017 2018
Profitability ratios
Net Profit Margin (%) 10.73 7.93 9.71 2.32 2.78 2.06 8.53 10.19 10.17
EBIT Margin (%) 16.09 11.63 14.38 5.90 5.96 5.05 12.11 13.70 13.94
ROE (%) 28.43 20.95 26.30 13.30 17.05 12.85 28.67 28.96 24.69
ROA (%) 16.68 11.61 16.21 6.51 8.22 6.59 20.22 20.01 18.14
Debt & Safety ratios
Current Ratio 1.66 1.62 1.59 1.56 1.55 1.64 1.54 1.53 1.74
Valuation multiples
PER (Price to earnings) 15.08 6.79 12.19 17.39 9.00 11.31 13.44 15.02 12.45

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