Question

Go to the Yahoo! Finance Web site. Review the overview/main pages for the four public companies whose names your professor will provide to you. Boeing (BA); International Business Machines Corp. (IBM); Parker Hannifin Corp (PH); Walt Disney Co. (DIS) Research the four firms using either Key Statistics or Financials from the overview/main pages for the stocks on Yahoo! Finance Web site. Compute and compare the following financial ratios for the four firms for their most recent fiscal years:< > Note: In Key Statistics under the heading "Valuation Measures" there are numbers for both Trailing P/E ratios and Forward P/E ratios. Most commonly, in calculating both ratios the corporation's current stock price is divided by its earnings per share (EPS). The difference is that Trailing P/E ratios use reported EPS for the past year, specifically the past/trailing 12 months (ttm), and Forward P/E ratios use estimated EPS for the upcoming 4 quarters. Also, in interpreting some of the other statistics provided, please note that "yoy" is an acronym for "year-on-year" and "mrq" is an acronym for "most recent quarter."

Current Ratio (X)

Sales/Total Assets (percent) or Total asset turnover

Times interest earned (X)

Total Debt/Equity (percent)

Net Income / Net Sales (percent) or Return on Sales (ROS)

Net Income / Total Assets (percent) or Return on Assets (ROA)

Net Income / Common Equity (percent) or Return on Equity (ROE)

P/E or P/E Ratio (X)

Answer 1

	BA	IBM	PH	DIS
Current ratio = current assets/current liabilities	87830000/81590000	49146000/38227000	5085238/3197483	16825000/17860000
	1.08	1.29	1.59	0.94
Sales/Total Asset (percent)	101127000/117359000	79591000/123382000	14302392/15320087	59434000/98598000
	86.17%	64.51%	93.36%	60.28%
Times Interest earned = EBIT/Interest	11843000/475000	12230000/723000	1964161/213873	14837000/682000
	24.93	16.92	9.18	21.76
Total debt/equity (percent)	116949000/339000	106452000/16796000	9454594/5859866	44643000/48773000
	34498%	634%	161%	92%
Net income/net sales	10460000/101127000	8728000/79591000	1060801/14302392	12598000/59434000
	10.34%	10.97%	7.42%	21.20%
Net Income/Total assets	10460000/117359000	8728000/123382000	1060801/15320087	12598000/98598000
	8.91%	7.07%	6.92%	12.78%
Net Income/Common equity	10460000/339000	8728000/16796000	1060801/5859866	12598000/48773000
	3085.55%	51.96%	18.10%	25.83%
P/E = Stock price/TTM EPS	19.56	13.36	13.97	14.77