Company Profit Margin Return on Equity Current Ration Regions Financial 31.79% 10.2% 0.04% Bank of America 31.74% 10.57% 0.41% Wells Fargo 26.44% 11.29% 0.25% Build a table showing the three companies...

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Accounting

Company
Profit Margin
Return on Equity
Current Ration
Regions Financial
31.79%
10.2%
0.04%
Bank of America
31.74%
10.57%
0.41%
Wells Fargo
26.44%
11.29%
0.25%
Build a table showing the three companies and the three ratiosand conduct an analysis of comparison.
Based on your interpretation of the ratios, which companiesseem to be doing better and why?
Are your findings and interpretations consistent with how youviewed the company prior to your research? If not, what isdifferent and why?
What unanswered questions do the ratios not address and howmight you go about addressing these questions?

Answer & Explanation Solved by verified expert

4.2 Ratings (898 Votes)

Hello there Here is the answer to your question Hope it helps You havent given enough data for answer to point b but I will try to give some pointers for the same For sake of simplicity Company Regions Financial is R company Bank of America is B and company Wells Fargo is W a Based only on profit margin ratio R is best among the three But when we also consider Return on equity we can see that W is doing better than R and B And when we consider current See Answer

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Company	Profit Margin	Return on Equity	Current Ration
Regions Financial	31.79%	10.2%	0.04%
Bank of America	31.74%	10.57%	0.41%
Wells Fargo	26.44%	11.29%	0.25%