1. Research about the company's business, and identify a key competitor.
2. Obtain the following information for the company, its competitor, and the industry from
Profitability Ratios:
- Operating margin
- Net profit margin
Management Effectiveness:
- Return on equity
- Return on assets
Efficiency:
- Asset turnover
- Inventory turnover
Financial Strength Ratios (MRQ, "most recent quarter"):
- Current ratio
- Quick ratio
- Total debt-equity
- Long term debt-equity
Growth Rates
- Sales growth (TTM) vs. 1 yr. ago
- Sales growth for past 5 years
- EPS (TTM) vs. 1 yr. ago
- EPS growth for past 5 years
Valuation:
- E ratio (TTM)
- P/E high for past 5 years
- P/E low for past 5 years
- Beta
- Price/sales (TTM)
- Price/cash flow (TTM)
3. Your report should have the following sections:
a. Company introduction, with a brief introduction about the industry and its key competitor
b. Company financial overview
c. Explain how profitability & efficiency, financial strength and valuation compare to the industry and key competitor.
d. Based on the ratio analysis supplemented with your research about the company, identify and discuss company's key strength and weakness.