. Ratio Analysis: Compare the two companies based on their ratios. Use the last column in the template to write in detail how each company is doing based on the ratios. Compare the company ratios to the industry and each other. Summary: This short write-up should be done directly in your Excel spreadsheet. o What is a ratio analysis? Briefly explain in about one paragraph. Please quote your resource. o Referring to the ratio analysis, in which company would you be willing to invest and why?

RATIO ANALYSIS

Note: Please change the column names based on your industry and your selected companies.

I HAVE GIVEN THE FIGURES ALL I NEED YOU TO DO IS ANALYSIS EACH LINE FROM 1 TO 26 THEN ANSWER QUESTION 27

RATIOS ANALYSIS

Profitability Ratios (%)	E. commerce	Amazon	EBay
1)Gross Margin	43%	41.27%	77.37%
2)EBITD Margin	0	28.79%	31.48%
3)Operating Margin	9.41%	5.96%	22.17%
4)Pretax Margin	22.33%	5.57%	24.38%
5) Effective Tax Rate	21%	0%	6.99%

Financial Strength	E. commerce	Amazon	EBay
6) Quick Ratio	0.83	0.84	0
7) Current Ratio	1.62	1.1	1.31
8) LT Debt to Equity	53.80%	72.90%	176.40%
9) Total Debt to Equity	56.46%	73.98%	226.64%
10) Interest Coverage	20.75	8.95	0

Valuation Ratios	E. commerce	Amazon	EBay
11) P/E Ratio	201.01	75.3	19.17
12) Price to Sales (P/S)	5.56	3.52	3.09
13) Price to Book (P/B	16.63	16.69	8.21
14) Price to Tangible Book	24.37	73.98%	226.64%
15) Price to Cash Flow	55.66	51.27	16.73
16) Price to Free Cash Flow	59.19	40.14	15.18

Management Effectiveness (%)	E. commerce	Amazon	EBay
17) Return On Assets	7.16%	7.34%	8.61%
18) Return On Investment	9.71%	11.66%	10.41%
19) Return On Equity	15.72%	21.12%	34.55%
Dividends
20) Dividend Yield	17.20%	0	1.39%
21) Payout Ratio	0.02%	0	12.60%
Efficiency
22) Revenue/Employee	475.72K	389.29K	775.43K
23)Net Income/Employee	83.17K	18.45K	138.86K
24) Receivable Turnover	23.22	17.42	14.08
25) Inventory Turnover	9.12	8.86	0
26) Asset Turnover	1.49	1.55	0.48

27) Referring to your ratio analysis above, in which company would you be willing to invest, and why? As my analysis