You are the assistant to the CEO of a major company. Your CEO keeps an eye on th
ID: 2768020 • Letter: Y
Question
You are the assistant to the CEO of a major company. Your CEO keeps an eye on the competition, and asks you to do the following. Using ratio analysis, compare two major competitors in the same industry. Instructions: Pick any two U.S. public companies in the same industry. You may obtain financial information and the companies' latest annual reports on the web directly from MSN Money or Yahoo Finance. For additional information, look for the SEC Form10-K link from one of the MSN Money or Yahoo Finance financial sites. One of your two companies can be the same company you used in Week 2. Select the 10 "most important" financial ratios for your two companies and calculate each for the last 2 fiscal years using Excel. You should calculate at least one ratio in each category: liquidity, leverage, profitability, and efficiency. Then, add other ratios where there are large differences between the two companies you chose. That's my definition of the phrase "most important." Follow the same format as the Drugstore Chains example (DrugstoreChains.xls). Please feel free to pick other liquidity, leverage, profitability, and efficiency ratios if they are more important than the ones selected in this example.
Create a single Excel file for your entire assignment.
You should calculate, and comment upon, all 10 financial ratios for the last 2 fiscal years. For each ratio, your comment should indicate which company has the better ratio.
All calculations should be shown, and all answers should be thoroughly explained (a.k.a. "show your work").
It is often useful to compare financial ratios for a company with financial ratios of its industry, but this is not required. Industry financial ratios can be found on Morningstar.com, Yahoo Finance and MSN Money andhttp://www.bizstats.com/corporations.asp?profType=ratios
What can you tell from your analysis? In other words, which company is the stronger competitor overall? Take a stand. Give your reasons.
PLEASE USE CHICK FIL-A AND MCDONALDS
Explanation / Answer
Ans;
BALANCE SHEET GE MONEY LMITED FST INTERNATIONAL As at As at 31-Dec-15 30-Dec-14 $ $ EQUITY AND LIABILITIES Shareholders’ Funds Share Capital (Shares Of $ 10 each) 2,000,000 2,500,000 Reserves and Surplus 29,975,254 37,469,068 Non-current liabilities Long Term Debt 4,568,579 4,656,877 Deferred Tax Liabilities (Net) 4,556,600 4,505,440 Other Long Term Liabilities 12,111,000 12,444,000 Long Term Provisions 17,072,374 17,907,696 Current liabilities Short Term Borrowings 4,603,409 5,547,619 Trade Payables 655,236,298 518,202,438 Other Current Liabilities 370,554,508 315,230,876 Short Term Provisions 1,360,223 2,338,782 TOTAL 1,102,038,245 920,802,796 ASSETS Non Current Assets Fixed Assets Tangible Assets 68,285,681 66,841,079 Intangible Assets 45,704,572 14,969,313 Capital Work-in-Progress 19,875,290 110,353,393 Intangible Assets Under Development 3,329,163 725,000 Non Current Investments Long Term Loans and Advances 71,322,637 96,296,582 Other Non Current Assets Current assets Current Investments Inventories 24,804,976 2,415,784 Trade Receivables 324,860,970 296,374,223 Cash and Bank Balances 224,293,478 22,094,996 Short Term Loans and Advances 283,212,615 260,949,210 Other Current Assets 36,348,863 49,783,216 TOTAL 1,102,038,245 920,802,795 Other Data Sales 27,550,956 23,020,070 Gross Profit 6,887,739 11,510,035 Net Profit 1,584,180 4,488,914 No OF shares 200,000 250,000Related Questions
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