Question: I'm just looking for examples to help me calculate the ratios below. Select two companies in the same industry that you like make sure that
I'm just looking for examples to help me calculate the ratios below.
Select two companies in the same industry that you like make sure that the two companies are from two different countries and make sure that you can read the language in the financial statements.State which companies and countries you are using for your answer and cite the sources of the financial statements that you are using.Do not use the same companies that are required in part 2 below.
Calculate each of the ratios listed below for each of the companies for the latest two yearsreported in the financial statements:
Current ratio (Current assets/Current liabilities)
Total asset turnover (Sales/Total assets at year-end)
Debt-to-equity ratio (Total liabilities/Total stockholders' equity)
Times interest earned ([Income before income taxes + Interestexpense]/Interest expense)
Profit margin (Net income/Sales) Return on equity (Net income/Average totalstockholders'equity)
Operating profit margin (Operating income/Sales)
Operating income as a percentage of total stockholders' equity (Operatingincome/Average totalstockholders' equity)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
