Did you know that you can get lots of financial information free of charge? Go to finance.yahoo.com. Use the quote lookup located on the left side to get financial information about any publicly traded company.

Required:

1. For your company of choice, obtain the most recent income statement and balance sheet information by clicking on the financials in the bottom left-hand corner.

2. Click on competitors to obtain a direct competitor comparison with your company of choice. Select a competing company and obtain their most recent income statement and balance sheet information.

3. Calculate the following risk ratios for both companies for the most recent year. Based on these calculations, which company appears to be more risky?

a. Receivables turnover ratio.

b. Inventory turnover ratio.

c. Current ratio.

d. Acid-test ratio.

e. Debt to equity ratio.

4. Calculate the following profitability ratios for both companies for the most recent year. Based on these calculations, which company appears to be more profitable?

a. Gross profit ratio.

b. Return on assets.

c. Profit margin.

d. Asset turnover.

e. Return on equity.