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There are two companies, Target, and Tiffany & Company. Look up financial information to compute two ratios; 1. the PPE ratio and 2. PPE as
There are two companies, Target, and Tiffany & Company. Look up financial information to compute two ratios; 1. the PPE ratio and 2. PPE as a % of Total Assets. The formulas are listed below.
- PPE ratio = Sales / Net PPE
- PPE as a % of Total Assets = Net PPE / Total Assets
Target-
Net Revenue Sales: 78,112,000
Total Assets: 42,779,000
Net PPE: 28,519,000
Tiffany & Co.-
Net Revenue Sales: 4,424,000
Total Assets: 6,660,100
Net PPE: 2,201,500
You will use Yahoo Finance to get the most recent year-end financial statements to compute the ratios. You will need 3 amounts;
- Total revenues (sales) (Income Statement)
- Total Assets (Balance Sheet)
- Net PPE - Property, Plant and Equipment (Balance Sheet)
Instructions:
- List your company and show your computations for each ratio (don't just give the result, list the numbers used in the formulas).
- Briefly comment on the results and the difference between the two companies/industries.
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