Compare the financial health of two public companies

Reference no: EM133251832

Question - Evaluate and compare the financial health of two public companies in the same industry with ratio analysis.

Consider the two companies, Walmart and Tiffanys. Both companies operate in the retail sector but Walmart is a Consumer Staple Company and Tiffanys is a Consumer Discretionary Company. In order to evaluate the financial health of both companies, one can analyze the Return on Equity (ROE) of each firm.

Please calculate the ROE for both firms over the last 3 years and evaluate the trend of each company's ROE over this time period. Determine whether the trend in the ROE is improving, declining or remaining stagnant.

Futhermore, perform a deeper dive into the ROE calculation with additional calculations and analysis of each company's Profit Margin, Asset Turnover and Financial Leverage. Which of these three components added or detracted to the ROE?

Finally, compare the financial health of both companies and report on the factors that influenced the ROE of each company.

Refer to Yahoo Finance (Links to an external site.) for the income statements and balance sheets for each company.

Reference no: EM133251832

Questions Cloud

What is the net cash flow : The Little Shop on the Corner has sales of $38,580, operating costs of $12,750, depreciation expense of $2,550, What is the Net cash flow

Customers are no longer staying in traditional channels : Customers are no longer staying in their traditional channels while going through the five stages of the buying process.

What should be the present value of the property today : The investor plans to pay all cash for the property and wants to earn a 10 percent return on investment. What should be the present value of the property today

Explain why learnership is appropriate path : Explain why a learnership is an appropriate path for Michael to take.

Compare the financial health of two public companies : Question - Evaluate and compare the financial health of two public companies in the same industry with ratio analysis

What is the discounted payback period : Brayani Kids Ltd. an airline caterer, is purchasing refrigerated trucks at a total cost of $3.25 million. What is the discounted payback period

What ethical dilemmas are presented in film arbitrage : What ethical issues are presented in the film Arbitrage? What ethical dilemmas are presented in the film Arbitrage?

What is the amount of the last dividend paid : Dividends are paid annually and increase at a constant rate equal to 5 percent per year. What's the amount of the last dividend paid

Explain why evacuation planning is important : Explain why evacuation planning is important,

User Account

All Pages