Question: Did you know that you can get ratios calculated for you free of charge? Go to www.ratioanalysis.net. You choose a ratio across the top bar

Did you know that you can get ratios calculated for you free of charge? Go to www.ratioanalysis.net. You choose a ratio across the top bar and then input the amounts from the financial statements. The website will then calculate the ratios for you.

Required:

1. Obtain the most recent income statement and balance sheet for two companies in the same industry.

2. Compare the two companies based on profitability ratios. Which company appears more profitable?

3. Compare the two companies based on liquidity and leverage ratios. Which company appears more risky?

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