Select two companies that are in a similar line of business and find their simplified balance sheets and income statements. Then draw up common$-$size statements for each company and compute the principal financial ratios. Compare and contrast the companies based on these data.

Here are the specific ratios that you need to find:

Key Financial Ratios

$1.$ Earnings Per Share $($EPS$)$

$2.$ Price$-$to$-$Earnings $($P$/$E$)$

$3.$ Debt to Equity $($D$/$E$)$

$4.$ Return on Equity $($ROE$)$

Liquidity ratios

$5.$ Current Ratio

$6.$ Quick Ratio

$7.$ Cash Ratio

$8.$ Operating Cash Flow Ratio

Profitability ratios

$11.$ Gross Margin Ratio

$12.$ Operating$-$Margin Ratio

$13.$ Return on Assets Ratio

$2.$ Look up the latest financial statements for a company of your choice and calculate the following ratios for the latest year:

Return on capital.

Return on equity.

Operating profit margin.

Days in inventory.

Debt ratio.

Times$-$interest$-$earned.

Current ratio.

Quick ratio.