Ratio analysis is one the most basic (and relativity easiest to compute) tools we us in Corporate Finance. The calculations may be relatively simple, but the interpretations are not, and are a very important part of Corporate Finance. Compare Facebook (symbol FB) to Apple (symbol AAPL). Based on their ratios and whether you are an: Investor, Banker or Trade Creditor or Long-Term Creditor, would you choose Apple or Facebook?

1. Why are ratios a Relative Tool?
2. Which ratios do you think are the most important (refer to power point slide #8). Tell me why. Choose one to discuss. Are you a(n):
   1. Potential Investor who is using the tool to research a company? If so, which ratios would you use and why?
   2. Banker or Trade Creditor? Which ratios would you use & why?
   3. Long-Term Creditor? Which ratios would you use & why?

Click on the link below, to go to directly to Apple (AAPL), or Facebook (FB). Or go to a search engine (Google) and type in , yahoo.finance.com. In the search bar, type in APPL for Apple or FB for Facebook.

The first screen you see will be a common stock Summary screen. To access the financial ratios, click on Statistics to the left of the Summary tab. All of the ratios you need to answer the Discussion Questions will be there. Remember, based on the ratios, choose either Apple or Facebook. There is no right or wrong answer, just defend your answer.

https://finance.yahoo.com/quote/AAPL?p=AAPL