There are three sectors of companies: retail business sector, telecommunication services sector, and car maker sector. Each sector contains two companies. Each team will choose one sector; no two teams can analyze the same sector.

Finished work should include 3 parts plus bibliography:

Part I - Evaluation (25 points): students analyze each company's performance using all of the ratios provided for the previous and current year. You also need to compare two of the ratios from each category (i.e. liquidity, asset management, etc.).

Part II - Recommendation (15 points): suppose that a friend has just inherited some money and is considering investing in the company you have analyzed. What is your recommendation? Fully explain the reasons for your recommendation. Refer to the specific findings from your ratio analysis. If the investing period varies, for example, three month, or five years, will your recommendation be different? Why?

Part III - Addition (10 points): do you think the given information is enough for you to make an good investment decision? If not, what other information/data do you think is a must? Explain briefly.

Bibliography (10 points): at least 3 external sources should be used, not including textbook.

Requirements:

• Your case study should be at least three pages, but not more than six pages, 12 pt. font, typed, double-spaced, with 1.25" margins.
• Bullet points may only be used in Part I.
• A complete bibliography listing all your external sources.
• A clear understanding of what is being communicated.
• Present information in a logical, well-polished manner with no grammar or spelling errors.

Group Homework 2: Case Study - Financial Ratio Analysis Company Name Walmart Costco Fiscal Year End Year end: Jan. 31 Year end: Sept. 1 Period As of Jan. 31, 2021 As of Jan. 31, 2020 As of Aug. 31, 2020 As of Aug. 31, 2019 Liquidity Analysis: Current Ratio 0.34 0.79 1.13 1.01 Acid-Test Ratio 0.49 0.22 0.64 0.52 Asset Management Analysis: Acounts Recivable Turnover 85.81 83.38 107.59 99.48 Average Collection Period 4.25 4.38 3.38 3.83 Inventory Turnover 9.35 3.88 11.84 11.66 Average Sale Period 38.81 41.02 29.76 30.81 Asset Turnover 2.21 2.22 3.00 3.36 Debt Management Analysis: Times Interest Earned(Gurufocus.com) 9.74 7.91 33.97 31.58 Debt-to-Equity Ratio 0.56 0.67 0.41 0.44 Profitability Analysis: Gross Margin Percentage 24.83 24.69 13.09 12.98 Net Profit Margin Percentage 2.42 2.84 2.40 2.40 Return on Assets 5.43 6.43 7.31 8.16 Return on Equity 15.66 18.64 21.70 23.77 Market Performance Analysis: Earnings per Share 4.75 5.19 9.02 8.26 Price-Earnings Ratio 29.34 21.52 37.35 34.28 Book Value per Share 31.03 28.80 42.39 35.45