1) Perform the time trend analysis for each ratio for these two companies over three years...

  

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1) Perform the time trend analysis for each ratio for these two companies over three years What kind of information can be obtained based on the trend analysis? (2) Perform the peer group analysis to discuss Apple strengths and weaknesses relative to HP (3) Use the Du Pont Identity to further analyze ROE's for two companies to support your analysis in (2) (4) Based on your analysis (1) through (3), which firm has more healthy financlal condition? Apple HP Formula 2019 2018 2017 2019 2018 2017 Current Ratio CA / CL 1.54 1.12 128 0.80 0.85 1.00 Quick Ratio (CA - Inv.) /CL 1.50 1.09 1.23 0.57 0.61 0.74 Debt-Equity Ratio Total L/ Total 1.09 0.75 -2120 -39.33 -6.58 1.17 SE Days Sales in Inventory (Inv. / COGS) * 9.3 8.8 12.6 44.0 46.3 49.7 365 (AR / Sales) Days Sales in Accounts Receivable 64.3 67.3 56.8 375 31.9 30,9 365 Total Asset Turmover Sales / Total 0.77 0.73 0.61 1.76 1.69 1.58 Assets Profit Margin Net Income / 21.24% 22.419% 21.099% 5.36% 9.11% 4.85% Sales ROA 16,32% 16.28% 12.88% 9.42% 15.39% 7.67% Net Inc. / Total Assets ROE Net Inc./ Total 61.06% 55.56% 36.07% -264.2196-833,65% -74.12% SE PE Ratio 18.59 8.09 6.91 13.27 Stock Price / EPS 18.24 16.06 1) Perform the time trend analysis for each ratio for these two companies over three years What kind of information can be obtained based on the trend analysis? (2) Perform the peer group analysis to discuss Apple strengths and weaknesses relative to HP (3) Use the Du Pont Identity to further analyze ROE's for two companies to support your analysis in (2) (4) Based on your analysis (1) through (3), which firm has more healthy financlal condition? Apple HP Formula 2019 2018 2017 2019 2018 2017 Current Ratio CA / CL 1.54 1.12 128 0.80 0.85 1.00 Quick Ratio (CA - Inv.) /CL 1.50 1.09 1.23 0.57 0.61 0.74 Debt-Equity Ratio Total L/ Total 1.09 0.75 -2120 -39.33 -6.58 1.17 SE Days Sales in Inventory (Inv. / COGS) * 9.3 8.8 12.6 44.0 46.3 49.7 365 (AR / Sales) Days Sales in Accounts Receivable 64.3 67.3 56.8 375 31.9 30,9 365 Total Asset Turmover Sales / Total 0.77 0.73 0.61 1.76 1.69 1.58 Assets Profit Margin Net Income / 21.24% 22.419% 21.099% 5.36% 9.11% 4.85% Sales ROA 16,32% 16.28% 12.88% 9.42% 15.39% 7.67% Net Inc. / Total Assets ROE Net Inc./ Total 61.06% 55.56% 36.07% -264.2196-833,65% -74.12% SE PE Ratio 18.59 8.09 6.91 13.27 Stock Price / EPS 18.24 16.06

Answer rating: 100% (QA)

Answer 1 Time Trend Analysis i Current Ratio HP The current ratio for HP is decreasing over time Further for 2018 and 2019 it is less than 1 When the current ratio is less than 1 it means that the fir... View the full answer