This project is designed to teach the student how to read and comprehend a firm's financial statements and overall performance by understanding financial ratios. Select two companies that are in a similar line of business and find their balance sheets and income statements. Compute the following principal financial ratios and compare and contrast the companies based on your data. Explain which one you would prefer to invest in and why.

a.Return on capital

b.Return on equity

c.Operating profit margin

d.Days in Inventory

e.Debt ratio

f.Times-interest earned

g.Current ratio

h.Quick ratio

i.Return on assets

j.Inventory turnover ratio

k.Long-term debt ratio

l.Cash coverage ratio

m.Receivables turnover ratio

n.Sales to assets ratio

The two companies chosen are google and microsoft. I don't have the sheets they have to be found online..