Review the information below that details the requirements for this discussion assignment.
Initial Post:
Be sure to number your response to each question so that your answer corresponds appropriately with the question being asked.
In this initial post, you will prepare a set of financial ratio analyses for two firms (firm A and B) that operate within the same industry and are close competitors. For example, IBM vs Microsoft, Home Depot vs Lowe’s, Coca-Cola vs PepsiCo, etc . But It is not limited to these firms.
For each of the following 5 key analysis areas, select one area (for example, profitability) and compare the ratios of A & B in this area :
Liquidity
Financial Leverage
Turnover
Profitability
Market Value
Compare the most recent ratios of firm A and firm B and then write a paragraph to explain
1) why there is a difference in some ratios between these two companies. (2 points)
2) which company is better based on the ratios analysis. Provide at least one reason with the fact to back up your analysis. (2 points)
General requirement:
The reasons for all posts need to be specific to your chosen companies, not just the economy.
You must use the fact or data to support your conclusion. The fact or data would be referred as a link for a webpage, a publication, a recent 10-Q, or news by the firms
