Competing companies from the same industry

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Reference no: EM13840850

Task:

1). Select two competing companies from the same industry (e.g., McDonalds vs. Burger King; Target vs. Walmart; etc.), calculate their financial ratios and measures (see below) based on their 2014 financial statements, and discuss from an investor's point-of-view in which of the two companies you would rather invest. Briefly explain your decision in one paragraph .

2).Structure of the work:

- Briefly describe the two companies and the industry that they are competing in.

- Calculate the following financial ratios/measures for both companies:

o 1) Return on Equity

o 2) Return on Assets

o 3) Profit Margin Ratio

o 4) Working Capital

o 5) Current Ratio

o 6) Quick (Acid-Test) Ratio

o 7) Debt-to-Equity Ratio

o 8) Cash Flow from Operations to Total Liabilities Ratio

3). Discuss from an investor's point of view why you would rather invest in one company over the other one.

Refer to the ratios/measures that you calculated. You may also include information and opinions about other factors (e.g., non-financial factors, market information) that influence your decision. The executive summary should be approximately 1 to 2 pages long (without the financial ratios table).

Format of Paper:

- Font size 12

- Single-spaced (ratios can be shown in single-spaced or table format)

- Font type: Times New Roman

How to retrieve Financial Statements/Financial Information:

o Go to: www.Finance.Yahoo.com

o At the top of the webpage, insert the company name next to the "Search Finance" button. Then, click on "Search Finance".

o You are now on the "Summary" screen. This page already contains some more relevant financial information.

o On the left side of the screen, there is a column called "More on..." In that column, you find more relevant financial information under "Key Statistics," "Income Statement," "Balance Sheet," and"Cash Flows."

Reference no: EM13840850

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