Question

, conduct research about a competitor company within the same sector as HOME DEPOT using IBIS World and other topic resources. Complete a competitor analysis that includes a minimum of three ratios and compares your company to a competitor company using these ratios to determine financial performance as well as how the company compares to overall industry averages. Justify your analysis by explaining your findings.

Answer 1

The Most Significant Financial Ratios:

Liquidity Ratios:

Liquidity ratios shed light on an organization's capacity to meet its momentary commitments to approach money if necessary. Consider it thusly: an organization that needs more liquidity (for example brisk admittance to money) to pay its momentary liabilities would need to sell its resources at negative costs and conditions to fund-raise. A portion of those ominous costs and conditions incorporate selling a resource at underneath market esteem, getting at high loan fees, or selling part of the organization.

Profitability Ratios:

Profitability ratios feature an organization's capacity to produce benefit comparative with its costs. For a large portion of the ratios inside this classification, organizations that show higher qualities comparative with their rivals are performing admirably.

A few Profitability ratios to consider include:

Return on Equity	Return on Assests	Profit Margin
Measures how competent an organization is at creating benefit.	Demonstrates an organization's productivity comparative with its absolute resources.	Expresses the level of deals left over after all costs are paid.

Leverage Ratios:

Leverage ratios center around the drawn out strength of an organization comparative with its capital as obligation. Leverage ratios are significant while surveying the monetary soundness of an organization accurately on the grounds that organizations depend on a combination of value and obligation to back their activities.

Leverage ratios to consider include: a) Fixed Assest / Net worth and b) Debt / Net worth