Question
Using the two stocks you selected from Homework #1, identify the Beta for each stock. In your own words, what conclusion can you draw from
Using the two stocks you selected from Homework #1, identify the Beta for each stock. In your own words, what conclusion can you draw from the stocks current and historical beta? If the stock market went up 10% today, what would be the impact on each of your stocks?
The two stock I chose were Google and Verizon Wireless.
Financial Ratios
Verizon
Liquidity ratio -
Current Ratio -
2013 70.99B / 27.05B = 2.62
2014 29.62B / 28.06B = 1.06
Quick Ratio -
2013 (70.99B 1.02B) / 27.05 = 2.58
2014 (29.62B 1.15B) / 28.06 = 1.01
Asset management ratio -
Asset Turnover Ratio -
2013 120.55B / 274.1B = .44
2014 127.08B / 232.71B = .55
Fixed Assets Turnover Ratio -
2013 120.55B / 88.96B = 1.36
2014 127.08B / 89.95B = 1.41
Days Sales Outstanding -
2013 (120.55B / 365) / 12.44B = 37.7
2014 (127.08B / 365) / 14B = 41.2
Profitability ratio -
Net Profit Margin -
2013 22.21B / 120.55B = .18
2014 13.44B / 127.08B = .11
Liquidity ratio -
Current Ratio -
2013 72.89B / 15.91B = 4.58
2014 78.66B / 16.78B = 4.68
Quick Ratio -
2013 (72.89B 426M) / 15.91B = 4.55
2014 No Inventory Reported
Asset management ratio -
Asset Turnover Ratio -
2013 59.73B / 110.92B = .54
2014 65.83B / 129.19B = .51
Fixed Assets Turnover Ratio -
2013 59.73B / 16.52B = 3.62
2014 65.83B / 23.88B = 2.76
Days Sales Outstanding -
2013 (59.73B / 365) / 9.39B = 58.7
2014 (65.83B / 365) / 10.85B = 66.28
Profitability ratio -
Net Profit Margin -
2013 11.3B / 59.73B = .19
2014 11.42B / 65.83B = .17
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