How to do analysis of financial performance using financial

Reference no: EM1310528

How to do Analysis of Financial performance using financial ratios.

You have the following information taken from a 1996 financial statement of Computronics Corporation and Digitek Corporation (all figures are in the $ millions except for share amounts. Compare and contrast the financial performance of the 2 companies using financial ratios discussed.

All figures in millions	Computronix	Digitek
Key Assumptions	1996	1996
Dividend Payout	40.0%	20.0%
Number of Shares	200	100

Income Statement	1996	1996
Sales	$3,379.3	$4,537.0
EBIT	$317.6	$403.1
Interest Expense	$54.7	$4.8
Net Income	$153.7	$239.0

Balance Sheet	1996	1996
Average Assets	$2,457.9	$3,459.7
Average Shareholders' Equity	$1,113.3	$2,347.3

Market Data
Market Price / Share at Beginning of Year	$15.00	$38.00
Market Price / Share at End of Year	$12.00	$40.00

Reference no: EM1310528

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