Overview
Find the financials for two public companies in a similar industry, and calculate the following ratios. Please use the company's most recent 10-K and upload the financials with your assignment, or provide a link to where you found them. I recommend using the SEC website to find these (https://www.sec.gov/search-filings). Alternatively, most public companies will have their 10-K in the investor relations section of their website, that's acceptable to use as well.
Ratios to Calculate:
- Current Ratio
- Quick Ratio
- Receivables Turnover
- Average Collection Period
- Inventory Turnover
- Days in Inventory
- Gross Profit Margin
- Net Profit Margin
- Return on Equity
- Return on Assets
- Earnings Per Share
- Price to Earnings
- Debt to Equity
- Times Interest Earned
For each ratio, indicate which company is performing better based on the result of each ratio. In addition, please provide 2 or more paragraphs explaining which company you would invest in and why based on your analysis. Please complete this in Excel using formulas so I can follow your work. *This is an into level accounting class*