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