Consider the following 2022 data for Atlantic Company, Inc., and Pacific Depot, Inc. (in billions except for price per share):

1. Determine the profit margin, ROE, market capitalization, enterprise value, PE multiple, and EV multiple for both Atlantic Company and Pacific Depot.

2. How would you describe these two companies from a financial point of view? Overall, they are similarly situated. In 2022, Pacific Depot had a higher ROE (partially because of a higher total asset turnover and a higher profit margin), but Atlantic had a higher EV multiple.

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Sales EBIT Net income Cash Depreciation Interest-bearing debt Total assets Price per share Shares outstanding Shareholder equity Atlantic Company, Inc. $53.4 $4.1 $2.3 $.4 $1.5 $10.1 $32.7 $53 1.0 $11.9 Pacific Depot, Inc. $78.8 $16.6 $5.4 $2.0 $ 1.6 $14.7 $40.5 $ 91 1.4 $17.9