Go to the Yahoo! Finance Web site. Review the overview/main pages for the four public companies whose

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Go to the Yahoo! Finance Web site.
Review the overview/main pages for the four public companies whose names your professor will provide to you.
Research the four firms using either Key Statistics or Financials from the overview/main pages for the stocks on Yahoo! Finance Web site. Compute and compare the following financial ratios for the four firms for their most recent fiscal years:
- Chevron
- Eaton
- Kroger
- Walmart
In Key Statistics under the heading "Valuation Measures" there are numbers for both Trailing P/E ratios and Forward P/E ratios. Most commonly, in calculating both ratios the corporation's current stock price is divided by its earnings per share (EPS). The difference is that Trailing P/E ratios use reported EPS for the past year, specifically the past/trailing 12 months (ttm), and Forward P/E ratios use estimated EPS for the upcoming 4 quarters. Also, in interpreting some of the other statistics provided, please note that "yoy" is an acronym for "year-on-year" and "mrq" is an acronym for "most recent quarter."
a. Current Ratio (X)
b. Sales/Total Assets (percent) or Total asset turnover
c.
Times interest earned (X)
d. Total Debt/Equity (percent)
e. Net Income / Net Sales (percent) or Return on Sales (ROS)
f. Net Income / Total Assets (percent) or Return on Assets (ROA)
g. Net Income / Common Equity (percent) or Return on Equity (ROE)
h. P/E or P/E Ratio (X)
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...
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Fundamentals of Corporate Finance

ISBN: 978-1259024962

6th Canadian edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim

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