Question

In: Finance

Show examples of two companies in the same industry whose financial statements are available online. Complete...

Show examples of two companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them.

  • What did your analysis tell you about these companies?
  • What sorts of decisions would this analysis help you make; such as buying stocks, considering accepting an employment offer,etc.?

Solutions

Expert Solution

Two companies in the same industry are Amazon and Apple.

Amazon and Apple both are American conglomerate and both are working in technological space. If you look at the the financial statements about this company then the ratios are in stark contrast with each other even though these companies are leader of their respective segment.

Debt equity ratio of Apple is very low and it is mainly because Apple has a lower debt whereas debt equity ratio of Amazon is higher than Apple.

When we will looking at the current ratios and quick ratios of the company to determine the liquidity, Apple will be having a better current ratio and quick ratio than Amazon because it has higher cash in hand.

When we will be determining the profitability margins and profitability ratios of the company, that Amazon slightly has a better profitability ratio and it is also able to performing better on the operating standard because the operating profit margin along with the gross profit margin and the net profit margin has been higher of the Amazon.

Apple also have a better solvency and asset effectiveness ratio than that of Amazon.

if I had to consider buying of the stock ,then I will be looking for buying the stock of the apple in the long run as it is providing me with the higher security and a higher probability of rate of return in adverse scenarios when the economy will be taking downloads swing,Apple will be providing me with adequate security weather in in investing or jobs.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Choose two companies in the same industry whose financial statements are available online. Complete several financial...
Choose two companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them. What did your analysis tell you about these companies? What sorts of decisions would this analysis help you make; such as buying stocks, considering accepting an employment offer, etc.?
Choose two companies in the same industry whose financial statements are available online. Complete several financial...
Choose two companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them. What did your analysis tell you about these companies? What sorts of decisions would this analysis help you make; such as buying stocks, considering accepting an employment offer, etc.?
Choose two companies in the same industry whose financial statements are available online. Complete several financial...
Choose two companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them. What did your analysis tell you about these companies? What sorts of decisions would this analysis help you make; such as buying stocks, considering accepting an employment offer, etc.?
Choose two companies (Target and Walmart) in the same industry whose financial statements are available online....
Choose two companies (Target and Walmart) in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them. Share your analysis and answer the following questions.: What did your analysis tell you about these companies? What sorts of decisions would this analysis help you make; such as buying stocks, considering accepting an employment offer,etc.?
Summary information from the financial statements of two companies competing in the same industry follows.   ...
Summary information from the financial statements of two companies competing in the same industry follows.    Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 770,000 $ 880,200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,500 Accounts receivable, net 46,500 64,600 Interest expense 7,900 13,000 Merchandise inventory 84,440 132,500 Income tax expense 14,800 24,300 Prepaid expenses 5,000 6,950 Net income 162,200...
Summary information from the financial statements of two companies competing in the same industry follows. Barco...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 810,000 $ 923,200 Cash $ 20,000 $ 35,000 Cost of goods sold 589,100 636,500 Accounts receivable, net 35,400 51,400 Interest expense 9,300 11,000 Current notes receivable (trade) 9,000 8,400 Income tax expense 15,569 25,487 Merchandise inventory 84,940 140,500 Net income...
Summary information from the financial statements of two companies competing in the same industry follows. Barco...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 790,000 $ 927,200 Cash $ 18,500 $ 37,000 Cost of goods sold 588,100 642,500 Accounts receivable, net 36,400 59,400 Interest expense 8,200 16,000 Current notes receivable (trade) 10,000 7,800 Income tax expense 15,185 25,597 Merchandise inventory 84,340 140,500 Net income...
Summary information from the financial statements of two companies competing in the same industry follows. Barco...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 800,000 $ 926,200 Cash $ 18,500 $ 34,000 Cost of goods sold 594,100 642,500 Accounts receivable, net 39,400 53,400 Interest expense 8,400 15,000 Current notes receivable (trade) 9,700 7,400 Income tax expense 15,377 25,570 Merchandise inventory 84,540 134,500 Net income...
Summary information from the financial statements of two companies competing in the same industry follows. Barco...
Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 780,000 $ 919,200 Cash $ 21,000 $ 37,000 Cost of goods sold 588,100 642,500 Accounts receivable, net 39,400 54,400 Interest expense 8,100 19,000 Current notes receivable (trade) 9,200 7,200 Income tax expense 14,992 25,376 Merchandise inventory 84,340 132,500 Net income...
Select two public companies in the same industry, obtain their most recent published financial statements, and...
Select two public companies in the same industry, obtain their most recent published financial statements, and perform financial ratio analysis for both. Write a report to summarize your findings and conclusion. Your report should include: Balance sheet ratio analysis Income statement ratio analysis Statement of cash flow ratio analysis Credit rating of both companies by Standard & Poor’s and Moody’s Ratio comparative analysis Clear conclusion and opinion about which company you prefer to invest in, and why.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT