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Using the relevant ratios from the attached schedules, please answer the following questions. To do this you should consider the 3-year trend, i.e. improving, declining,
Using the relevant ratios from the attached schedules, please answer the following questions. To do this you should consider the 3-year trend, i.e. improving, declining, or remaining stable, and the absolute metrics presented.
In answering each question, please identify the relevant ratio(s) from the attached schedules supporting your answer.
a. Over the 3-year period presented, which company is most effective at collecting cash on its accounts receivable? Using the ratios provided, please explain/support your answer.
b. Over the 3-year period presented, which company generated the highest return on its owners investment? Using the ratios provided, please explain/support your answer.
c. Based on the 3-year performance, which company has the riskiest debt profile? Using the ratios provided, please explain/support your answer.
d. Based on the 3-year performance, which company is in the best position to meet its current obligations and have assets available to meet unexpected opportunities and expenses? Using the ratios provided, please explain/support your answer.
e. If you were a bank lending officer and each of these companies applied for a $1 billion office complex construction loan (i.e. to be repaid in 25 years with interest payments beginning immediately after funding begins), which company would you be more likely to lend? Using the ratios provided, please explain/support your answer.
f. If you were a financial analyst for a global investment company or pension fund, which company would you assign the higher investment recommendation? Using the ratios provided, please explain/support your answer.
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