Choose $2$ companies in the same industry.$($Examples: Walmart and Target, Subway and Penn Station$)$ Using the U$.$S$.$ Securities and Exchange Commission's websiteLinks to an external site., search for each of those $2$ companies.$$ Under "Selected Filings", choose $"10-$K $($annual reports$)$ and $10-$Q $($quarterly reports$)".$ Look for the latest $"10-$K$"$ report for each company.

Choose $1$ liquidity and efficiency ratio, $1$ profitability ratio, and $1$ solvency ratio.$$ Options are listed below.$$ Compare how each company performed using the $3$ ratios you chose $(1$ liquidity and efficiency, $1$ profitability, and $1$ solvency$).$ Which company performed stronger for each?

Research the industry norm for the $3$ ratios you chose.$($A simple Google search will work to find the industry norm.$)$ How did each of the companies you chose compare to the industry norm?$$

Liquidity and Efficiency Ratio Options $($Choose $1)$:

Current Ratio

Acid$-$test Ratio

Accounts Receivable Turnover

Inventory Turnover

Days$$ Sales Uncollected

Days$$ Sales in Inventory

Total Asset Turnover

Profitability Ratio Options $($Choose $1)$:

Gross Margin Ratio

Profit Margin

Return on Total Assets

Return on Equity

Solvency Ratio Options $($Choose $1)$:

Debt Ratio

Equity Ratio

Debt$-$to$-$equity Ratio

Times Interest Earned