Explain what each calculation tells you about the firm. Are they a good investment? Compare the two companies and explain which is the better investment and why. What other types of ratios would be helpful in this analysis? Explain.
Select two of the four companies shown below. Use the SEC Edgar website for your research. Companies: Ford General Motors Pepsi Coca-Cola Compare the firms’ profits for the past two years. Compute the working capital for each firm. Determine the price-earnings (P/E) ratio. Calculate the debt-to-equity ratio. Explain what each calculation tells you about the […]