Reference no: EM133117294

Question - Using the two publicly traded companies (Shivam cement and Ultracement cement), conduct the following analysis using two years of data 2019 and 2020:

a. Calculate the gross profit margin (profitability ratio) for two years.

b. Calculate the net profit margin (profitability ratio) for two years.

c. Calculate the inventory turnover and the days in inventory for two years.

d. Calculate the receivables turnover and the days in inventory for two years.

e. Calculate the working capital, current ratio, and quick ratio for two years (liquidity ratios).

f. Calculate the debt to equity ratio for two years (solvency ratio).

g. Using finance.yahoo.com, look up your two companies, go to the financial statement and click on the cash flow statement. At the bottom, the screen should have calculated the free cash flow. Pull the free cash flow numbers for two years for your companies.

Include all the calculations and prepare the numbers in tables and/or charts. Explain the financial performance of these two companies by explaining the results of each of the items/ratios above and conclude with which company would you rather invest in or work for and why.