Question: 1) Create an industry average 2) Use if statements to help determine the best stock to buy, see rules for each ratio below: 3) In
1) Create an industry average
2) Use if statements to help determine the best stock to buy, see rules for each ratio below:
3) In a separate chart Convert recommendations to points: Strong Buy =2, Buy = 1, Hold = 0, Sell =-1
4) Create a total count of points for each stock. The stock with the highest points is the best investment.
5) Create an executive summary to discuss the results
RULES:
Current Ratio = higher than average = BUY, Lower than average = SELL
Net Working Capital = higher than 1800 = BUY, 0-1799 = HOLD, Less than 0 = SELL
Accounts Rec. Turnover = higher than 2 = BUY, 1-1.99 = HOLD, Less than 1 = SELL
Inventory Turnover = = higher than 10 = BUY, 6-9.99 = HOLD, Less than 6 = SELL
Total Asset Turnover = higher than average = BUY, Lower than average = SELL
Total Debt to Assets = higher than average = SELL, Lower than average = BUY
Debt Equity Ratio = higher than average = SELL, Lower than average = BUY
| Price per Share | 68.18 | 71.81 | 49.81 | 55.38 | 83.16 | 53.13 | 61.22 |
| Financial Ratios | XOM | OXY | ECA | CNQ | APA | APC | DVN |
| Current Ratio | 1.471812627 | 1.169220737 | 1.438623523 | 0.991812364 | 1.70197308 | 0.97091763 | 0.856140351 |
| Net Working Capital | 23166 | 1038 | 1708 | -22.9 | 1835.8 | -161 | -451 |
| Accounts Rec. Turnover | 1.830621002 | 2.199871671 | 3.160021265 | 3.292706567 | 0.524686809 | 1.93301719 | -1.23024055 |
| Inventory Turnover | 24.67448051 | 7.748434238 | 30.46730769 | 2 | 4.143802647 | 6 | 22.37435897 |
| Total Asset Turnover | 2.093202428 | 0.58935407 | 0.636315533 | 0.379203078 | 0.42450448 | 0.321382581 | 0.476714304 |
| Total Debt to Assets | 0.041328294 | 0.066133808 | 0.190594112 | 0.305181885 | 0.168625906 | 0.252212661 | 0.18305754 |
| Debt Equity Ratio | 0.083432922 | 0.100622711 | 0.39196483 | 0.708391287 | 0.298121596 | 0.656504389 | 0.342379836 |
| Gross Profit Margin | 0.398 | 0.697 | 0.473 | 0.604 | 0.833 | 0.844 | 0.713 |
| Operational Profit Margin | 0.173 | 0.31 | 0.312 | 0.45 | 0.098 | 0.387 | 0.25 |
| Net Profit Margin | 0.095 | 0.28 | 0.198 | 0.308 | 0.057 | 0.207 | 0.15 |
| Return On Assets | 0.19828811 | 0.165081734 | 0.12580693 | 0.116880548 | 0.02439484 | 0.066655765 | -0.067318541 |
| Return On Equity | 0.400300978 | 0.251172161 | 0.258727257 | 0.271304313 | 0.043128775 | 0.173503591 | -0.125908558 |
| EPS | 8.69 | 8.35 | 7.91 | 7.54 | 2.09 | 6.97 | -4.85 |
| P/E | 7.84579977 | 8.6 | 6.297092288 | 7.344827586 | 39.78947368 | 7.62266858 | -12.62268041 |
| Revenue Per Share | 99.3297682 | 30.19240257 | 40.02662761 | 24.398266 | 36.90735776 | 32.05504587 | 34.27444795 |
| PEG Ratio | 3.86 | 3.17 | 1.1 | 2.42 | 2.07 | 0.5 | 3.33 |
| Beta | 0.37 | 0.98 | 1.05 | 2.25 | 1.21 | 1.08 | 1.16 |
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