Compare Monsanto Company (MON) and E.I. du Pont de Nemours & Company (DD) using a thorough financial ratios analysis.
(a) For each company, compute all the ratios listed in Figure 2.7 (i.e., debt management. liquidity, asset management, market trend, and profitability) for the fiscal year chosen.
(b) Compare and contrast the two companies, using the ratios you calculated from part (a).
(c) Carefully read and summarize the 4’risk management” or hedging” practices described in the financial statements of each company.
(d) If you were a mutual fund manager and could invest in only one of these companies. which one would you select and why? Be sure to justify your answer by using your results from pails (a), (b), and (c).

Data from in Figure 2.7

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Current ratio Quick ratio Liquidity Inventory tumover ratio Day's sales outstanding ratio Total assets turnover ratio. Asset Management Debt management Key Financial Ratios Debt ratio Times-interest-earned ratio Market Trend Profitability Figure 2.7 Types of financial ratios used in evaluating a firm's financial health. P/E ratio Market/Book ratio Profit margin on sales Return on total assets Return on common equity