Please take a look below at the two companies' financial ratios.Identify the industries these two companies operate in. Pleaseinclude good quality analysis and arguments (e.g. this ratioindicates that... and that ratio indicates the other,... and takentogether these ratios indicate that.... (and so forth)) :
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
Please take a look below at the two companies' financial ratios.Identify the industries these two companies operate in. Pleaseinclude good quality analysis and arguments (e.g. this ratioindicates that... and that ratio indicates the other,... and takentogether these ratios indicate that.... (and so forth)) :
| 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 |
Related questions
Fill in the remaining boxes and write short response toquestion.
| Company Name | McDonald's | Wendy's | YUM! | Industry | |
| Average | |||||
| Market Price of Common Stock (Stock Price) | $35.0 | $31.0 | $45.0 | $37.0 | |
| Revenue (Sales) | $22,151.0 | $3,550.0 | $8,380.0 | $11,360.3 | |
| Cost of Goods Sold | $7,384.1 | $2,299.6 | $3,940.0 | $4,541.2 | |
| Gross Profit | $14,766.9 | $1,250.4 | $4,440.0 | $6,819.1 | |
| SG&A Expense | $5,776.0 | $261.1 | $3,005.0 | $3,014.0 | |
| Depreciation + amortization | $1,148.2 | $167.8 | $401.0 | $572.3 | |
| Operating Income (EBIT) Earnings before interest and taxes | $7,842.7 | $821.5 | $1,034.0 | $3,232.7 | |
| Interest Expense | $467.1 | $48.5 | $164.5 | $226.7 | |
| Net Profits After Tax | $1,675.0 | $236.0 | $617.0 | $842.7 | |
| 3-5 Year Growth Rate In Earnings | 15.00 | 8.00 | 7.00 | 10.00 | |
| Cash | $492.8 | $171.2 | $192.0 | $285.3 | |
| Accounts Receivables | $734.5 | $124.0 | $169.0 | $342.5 | |
| Inventory | $129.4 | $54.4 | $67.0 | $83.6 | |
| Total Current Assets | $6,500.0 | $1,235.0 | $1,485.0 | $3,073.3 | |
| Total Assets | $28,524.0 | $3,164.0 | $6,500.0 | $12,729.3 | |
| Short Term Debt | $388.0 | $50.9 | $10.0 | $149.6 | |
| Total Current Liabilities | $2,485.8 | $528.5 | $1,461.0 | $1,491.8 | |
| Long Term Debt | $9,342.5 | $692.6 | $2,056.0 | $4,030.4 | |
| Total Liabilities (Total Debt) | $11,828.3 | $1,221.1 | $3,517.0 | $5,522.1 | |
| Stockholders Equity | $16,695.7 | $1,942.9 | $2,983.0 | $7,207.2 | |
| Annual Dividends paid to common stock | $578 | $54.0 | $125 | $252 | |
| Preferred Dividends | $0.0 | $0.0 | $0.0 | $0.0 | |
| # of Common Shares Outstanding | 1,154.0 | 114.7 | 292.0 | 520.2 | |
| Financial Ratio's | McDonald's | Wendy's | YUM! | Average | |
| Liquidity | |||||
| Current Ratio | 2.61 | 2.34 | 1.02 | 1.99 | |
| Quick Ratio | 2.56 | 2.23 | 0.97 | 1.92 | |
| Asset Activity | |||||
| Accounts Rec. Turnover | |||||
| Inventory Turnover | |||||
| Total Asset Turnover | |||||
| Debt | |||||
| Total Debt to Equity | |||||
| Equity Multiplier | |||||
| Times Interest Earned | |||||
| Profitability | |||||
| Gross Profit Margin | |||||
| Operating Profit Margin | |||||
| Net Profit Margin | |||||
| (ROA) Return On Assets | |||||
| (ROE) Return On Equity | |||||
| Market Value | |||||
| EPS | |||||
| P/E | |||||
| PEG Ratio | |||||
| Dividends Per Share | |||||
| Dividend Payout Ratio | |||||
| Book Value Per Share | |||||
| Price to Book Value | |||||
| Market Capitalization | |||||
| Cash Per Share | |||||
| Revenue Per Share |
Based on the Financial Ratio's, which company do you fell is thebest investment?
(enter answer in this textbox) (must be 100 words or more)
I need help to write a detailed comparison of how each companyis doing based on the ratios. Compare the company ratios to theindustry and each other. It has to be written in the analysiscolumn for each ratio.
| Automotive | Autozone | O'Reily's | ANALYSIS |
| 8 | 7 | 7.5 | |
| 6 | 5.5 | 6 | |
| 5 | 5 | 5 | |
| 2 | 2 | 2.5 | |
| 30% | 30% | 30% | |
| 1.5 | 2 | 1.75 | |
| 2 | 1.46 | 1.54 | |
| 1.48 | 1.65 | 2.03 | |
| 1.55 | 1.45 | 1.35 | |
| 2.89 | 3.98 | 4.65 | |
| 5 | 6 | 7 | |
| 6.89 | 4.56 | 8.98 | |
| 7.89 | 9.87 | 10.23 | |
| 1 | 2 | 3 | |
| 2.56 | 4.56 | 1.23 | |
| 2 | 5 | 6 | |
| 1.3 | 2 | 2.68 | |
| 2.24 | 1.23 | 1.68 | |
| 3.65 | 1.3256 | 1.7895 | |
| 8.65 | 7.23 | 4.35 | |
| 7.8 | 4.23 | 4.38 | |
| 5.6 | 4.23 | 4.69 | |
| 8.96165 | 7.56 | 8.65 | |
| 2.36 | 5.36 | 4.65 | |
| 4.25 | 1.236 | 5.236 | |
| 1.235 | 12.36 | 18.95 |
RATIOS |
Profitability Ratios (%) |
Gross Margin |
EBITD Margin |
Operating Margin |
Pretax Margin |
Effective Tax Rate |
Financial Strength |
Quick Ratio |
Current Ratio |
LT Debt to Equity |
Total Debt to Equity |
Interest Coverage |
Valuation Ratios |
P/E Ratio |
Price to Sales (P/S) |
Price to Book (P/B) |
Price to Tangible Book |
Price to Cash Flow |
Price to Free Cash Flow |
Management Effectiveness (%) |
Return On Assets |
Return On Investment |
Return On Equity |
Dividends |
Dividend Yield |
Payout Ratio |
Efficiency |
Revenue/Employee |
Net Income/Employee |
Receivable Turnover |
Inventory Turnover |
Asset Turnover |
