Question
Which company would you invest in given the following comparable ratios. Please keep in mind the importance of long term solvency, profitability ratios and market
Which company would you invest in given the following comparable ratios. Please keep in mind the importance of long term solvency, profitability ratios and market value ratios and explain why.
For the firm TSN US, their cash ratio was 0.09, current ratio was 1.30, quick ratio was 0.48 Financial leverage 2.31, assets turnover 1.36, profit margin 4.77, return on assets 6.50, return on equity 15.04, Price Earnings Ratio (P/E) 15.12, Price to Book (MKT/BOOK) 2.21, economic value added 866.6, and enterprise value 3.28. For the company SAFM US, their cash ratio was .44, current ratio was 2.69, quick ratio was 1.05 Financial leverage 1.22, assets turnover 2.00, profit margin 1.55, return on assets 3.10, return on equity 3.74, Price to Book (MKT/BOOK) 2.42, economic value added -43.4, and enterprise value -2.94. As far as NATH US, their cash ratio was .5.06 , current ratio was .5.84, quick ratio was 5.55, Financial leverage ___ assets turnover 1.17, profit margin 21.10, return on assets 24.65, return on equity ____Price Earnings Ratio (P/E) 75.56, economic value added 16.0 and enterprise value 21.12. For the company PPC US, their cash ratio was .16, current ratio was 1.58, quick ratio was .58 Financial leverage 2.87, assets turnover 1.75, profit margin 4.00, return on assets 7.00, return on equity 20.10, Price Earnings Ratio (P/E) 21.01, Price to Book (MKT/BOOK) 3.26, economic value added 195.8 , and enterprise value 3.48. For the company HRL US, their cash ratio was .62, current ratio was 2.14, quick ratio was 1.14, Financial leverage 1.41, assets turnover 1.17, profit margin 10.31, return on assets 12.05, return on equity 16.99, Price Earnings Ratio (P/E) 22.64 Price to Book (MKT/BOOK) 3.66, economic value added 614.3, and enterprise value 8.59.
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