Question

Ratio Analysis - Use the 2019 numbers

This assignment includes calculating the 10 ratios for two different companies (Lockheed and Boeing) in the industry which can be found attached to this assignment. Then, tell me which company you would invest in and why.  Ratios (10 x 10 x 2 = 200) + 40 (explanation) = 240 points

The 10 ratios to be calculated are the

Current Ratio, Quick Ratio, Debt Ratio, Debt to Net Worth Ratio, Net Sales to Total Assets Ratio, Net Profit on Sales Ratio, Net Profit on Assets, Net Profit on Equity, Average Inventory Turnover Ratio, Accounts Receivables Ratio.

Use the materials from the Instructional Materials Area for Tesla and Toyota.

Answer 1

Tesla Toyyota

current ratio current asset/current liability   

12103000/10667000=1.13 18879237/18226938=1.03

quick ratio current asset-inventory/current liablity   

12103000-3552000/10667000=0.8 18879237-2656396/18226938=0.89

debt ratio total liability/shareholders's equity

26842000/7467000=3.594 31869812000/20067137000=1.588

debt to net worth ratio= total liability/total net worth=26842000/6930000=3.87 31869812000/20067137000

net worth=TotalAssets−TotalLiabilities-intangile asset =1.588

  NET WORTH =51936949000-31869812000

=34309000-26842000-537000=6930000 =20,067,137,000‬

net sales to total asset ratio NET SALE/AVERAGE ASSET

25708000/34309000=0.749 30225681000/51936949000=0.58

NET PROFIT ON SALES RATIO NET PROFIT/SALES

368000/34309000=0.0107 1882873000/30225681000=0.0622

NET PROFIT ON ASSET NET PROFIT/TOTAL ASSET   

368000/34309000=1.07% 1882873000/51936949000=3.62%

NET PROFIT ON EQUITY NET PROFIT/EQUITY

368000/6618000=5.56% 1882873000/19348152000=9.7%

AVG INVENTORY TURNOVER RATIO

COST OF GOODS SOLD/AVG INVENTORY

20625000/3552000=5.8 24781785000/2656396000=9.32

ACCOUNT RECIEVABLE RATIO NET CREDIT SALES/AVG RECIEVABLE

25708000/1324000=19.41 30225681000/9588661000=3.15

AS we are looking current ratio is good for tesla company but it is only slight and in quick ratio also only slight difference debt ratio is good for tesla .debt to net worth ratio it is tesla have good.net sales to total assets,accountable recievble ratio it is good for tesla and net profit on sales ratio,net profits on asset ,net profit on equity and avg inventory turnover ratio it is good for toyoto.as we look the things  the things coming computing profit and cost of sale it is good for toyoto other all for tesla in my view tesla is good to invest