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In: Finance

What industry can the following 2 companies be in based on financial ratios and why Company...

What industry can the following 2 companies be in based on financial ratios and why

Company A

Company B

P/E Ratio: 30

Price/Sales: 6

Price/Book Value of Equity: 7.5

Profit Margin: 20%

Operating Margin: 25%

Return on Assets (ROA): 6%

Return On Equity (ROE): 25%

Current Ratio: 3

P/E Ratio: 17

Price/Sales: 0.6

Price/Book Value of Equity: 3

Profit Margin: 3%

Operating Margin: 5%

Return on Assets (ROA): 7%

Return On Equity (ROE): 15%

Current Ratio: 1

Expert Solution

jeff jeffy answered 1 year ago

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