Question: Using the Module One Activity Template Spreadsheet and the financial data websites provided, analyze the financial health of your selected company and another company of
Using the Module One Activity Template Spreadsheet and the financial data websites provided, analyze the financial health of your selected company and another company of your choosing in the same industry.
| RATIO ANALYSIS | ||||
| Note: change the column names to your industry and selected companies | ||||
| RATIOS | [INDUSTRY/INDEX] | [COMPANY #1] | [COMPANY #2] | ANALYSIS |
| Profitability Ratios (%) | ||||
| Gross Margin | ||||
| EBITDA Margin | ||||
| Operating Margin | ||||
| Pre-Tax Margin | ||||
| Effective Tax Rate | ||||
| Financial Strength | ||||
| Quick Ratio | ||||
| Current Ratio | ||||
| LT Debt to Equity | ||||
| Total Debt to Equity | ||||
| Interest Coverage | ||||
| Valuation Ratios | ||||
| Price/Earnings Ratio | ||||
| Price to Sales P/S | ||||
| Price to Book P/B | ||||
| Free Cash Flow per Share | ||||
| Management Effectiveness (%) | ||||
| Return On Assets | ||||
| Return On Investment | ||||
| Return On Equity | ||||
| Efficiency | ||||
| Receivable Turnover | ||||
| Inventory Turnover | ||||
| Total Asset Turnover | ||||
| Free Cash Flow/Net Income | ||||
| What is Ratio Analysis? Briefly explain and cite your resources: | ||||
| Based on the ratio analysis above, in which company would you be willing to invest and why? | ||||
| References |
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