Step 1: Choose TWO publicly-traded companies from the same industry.

Step 2: Calculate key financial ratios listed below for the two publicly-traded companies, using data in their most recent annualfinancial statements as well as from the current stock market.

[Liquidity] Current ratio, Acid-test ratio, Inventory turnover

[Profitability] Operating profit margin, Total asset turnover

[Financing] Debt ratio, Equity ratio, Times interest earned (= interest coverage ratio)

[Shareholder value] Return on equity, Price/earnings ratio *You must show your calculation process as well.

Step 3: Describe your comparative analysis on the two companies, based upon their financial ratios, in the range of 300 to 500 words.