GOME (www.GOME.com.hk) is the leading chain retailer of consumer electronic products and household appliances in China, and

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GOME (www.GOME.com.hk) is the leading chain retailer of consumer electronic products and household appliances in China, and it competes to some extent with Best Buy and RadioShack. Key financial ratios for the current fiscal year follow.

gome wwwgomecomhk is the leading chain retailer of consumer electronic


Required
1. Which company is most profitable according to its return on assets?
2. Which company is most risky according to the debt ratio?
3. Which company deserves increased investment based on a joint analysis of return on assets and the debt ratio? Explain.

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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