Based on the financial information provided by Etsy and its competitor Shopify Which of the...

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Accounting

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Based on the financial information provided by Etsy and its competitor Shopify Which of the two companies is the better run company?

Answer the question by Analyzing the following data.

~The growth of each company

~Which of the two companies is generating the most profit

~P/E ratio/ YoY annual growth rates of revenue % and net income %

~ Beta

~Cash flow for operating, investing, and financing, as well as capital expenditures and free cash flow information

~Valuation (P/E, P/B, P/S, and Price to Cash Flow)

~Liquidity ratios

~WACC and Debt & Leverage Ratios

~Capital budgeting techniques and profitability ratios

\begin{tabular}{|c|c|c|c|c|c|c|c|} \hline FinancialLeverage & 6.10 & 3.24 & 0.00 & Financial Leverage & 1.20 & 1.21 & 0.00 \\ \hline Debt/Equity & 3.80 & 1.49 & 0.00 & Debt/Equity & 0.10 & 0.14 & 0.00 \\ \hline Debt Ratio & \multicolumn{3}{|c|}{1.21} & Debt Ratio & \multicolumn{3}{|c|}{23.41%} \\ \hline Debt to Equity Ratio & \multicolumn{3}{|c|}{3.90} & Debt to Equity Ratio & \multicolumn{3}{|c|}{30.57%} \\ \hline Interest Coverage Ratio & \multicolumn{3}{|c|}{49.00} & Interest Coverage Ratio & \multicolumn{3}{|c|}{1559.91%} \\ \hline Debt Service Coverage Ratio & \multicolumn{3}{|c|}{0.22} & Debt Service Coverage Ratio & \multicolumn{3}{|c|}{7.50%} \\ \hline Weighted Average Cost of Capital & \multicolumn{3}{|c|}{14.49%} & Weighted Average Cost of Capital & \multicolumn{3}{|c|}{18.02%} \\ \hline Gross Profit Margin & 0.71 & 0.71 & 0.00 & Gross Profit Margin & 0.54 & 0.51 & 0.00 \\ \hline EBITDA & 471 million & (661 million) & 0.00 & EBITDA & 314 million & (362 million) & 0.00 \\ \hline Operating Profit & 466 million & (659 million) & 0.00 & Operating Profit & 269 million & (822 million) & 0.00 \\ \hline Net Profit & 493 million & (694 million) & 0.00 & Net Profit & 2.9 billion & ( 3.5 billion) & 0.00 \\ \hline Cash Flow & 785 million & 926 million & 0.00 & Cash Flow & 2.5 billion & 1.6 billion & 0.00 \\ \hline Return on Assets (ROA) & 0.22 & 0.12 & 0.00 & Return on Assets (ROA) & 0.32 & -0.22 & 0.00 \\ \hline Return on Equity (ROE) & 0.74 & 0.74 & 0.00 & Return on Equity (ROE) & -0.21 & -0.30 & 0.00 \\ \hline Return on Invested Capital (ROIC) & 0.27 & 0.15 & 0.00 & Return on Invested Capital (ROIC) & 0.48 & 0.50 & 0.00 \\ \hline Interest Coverage & 60.11 & 54.10 & 0.00 & Interest Coverage & 21.11 & 14.90 & 0.00 \\ \hline \end{tabular}

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