Examine the market-to-book ratios for each firm. Are either of these firms considered "growth firms"...
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Examine the market-to-book ratios for each firm. Are either of these firms considered "growth firms" or "value firms" or neither? compare the valuation ratios of the two firms. how do you interpret the difference between them? how has enterprise value for the firms changed over the 4 years?
2020 2019 2018 2017 Ford Valuation Ratios Price-Earnings Ratio Market-to-Book Ratio Enterprise Value-to-EBITDA 21.98 11507.05 -2809.36 4.95 9063.78 -3.54 6.02 12309.15 -2492.72 7.57 6446.33 -3.74 Profitability Ratios Operating Margin Net Profit Margin Return on Equity -3.47% -1.01% -0.48% 0.33% 0.03% 0.07% 2.00% 2.29% 1.39% 3.11% 4.93% 2.80% Financial Strength Ratios Current Ratio Book Debt-Equity Ratio Market Debt-Equity Ratio Interest Coverage Ratio 1.20 5.27 0.84 -48.07 1.16 4.68 0.82 -17860.75 1.20 4.29 0.81 574.71 1.23 4.34 0.81 -292.63 2020 2019 2018 2017 Microsoft Valuation Ratios Price-Earnings Ratio Market-to-Book Ratio Enterprise Value-to-EBITDA 38.35 39372.65 690260.55 30.46 28308.95 -2394.22 26.11 40734.34 15.89 23.63 18254.11 8.34 Profitability Ratios Operating Margin 3 Net Profit Margin Return on Equity 36.94% 30.96% 14.70% 34.12% 31.18% 13.75% 31.72% 15.02% 11.69% 30.00% 26.39% 10.18% Financial Strength Ratios Current Ratio Book Debt-Equity Ratio Market Debt-Equity Ratio Interest Coverage Ratio 2.52 0.62 0.38 26.99 2.53 0.77 0.43 0.03 2.90 0.97 0.49 -2.20 2.92 1.01 0.50 -4.48 2020 2019 2018 2017 Ford Valuation Ratios Price-Earnings Ratio Market-to-Book Ratio Enterprise Value-to-EBITDA 21.98 11507.05 -2809.36 4.95 9063.78 -3.54 6.02 12309.15 -2492.72 7.57 6446.33 -3.74 Profitability Ratios Operating Margin Net Profit Margin Return on Equity -3.47% -1.01% -0.48% 0.33% 0.03% 0.07% 2.00% 2.29% 1.39% 3.11% 4.93% 2.80% Financial Strength Ratios Current Ratio Book Debt-Equity Ratio Market Debt-Equity Ratio Interest Coverage Ratio 1.20 5.27 0.84 -48.07 1.16 4.68 0.82 -17860.75 1.20 4.29 0.81 574.71 1.23 4.34 0.81 -292.63 2020 2019 2018 2017 Microsoft Valuation Ratios Price-Earnings Ratio Market-to-Book Ratio Enterprise Value-to-EBITDA 38.35 39372.65 690260.55 30.46 28308.95 -2394.22 26.11 40734.34 15.89 23.63 18254.11 8.34 Profitability Ratios Operating Margin 3 Net Profit Margin Return on Equity 36.94% 30.96% 14.70% 34.12% 31.18% 13.75% 31.72% 15.02% 11.69% 30.00% 26.39% 10.18% Financial Strength Ratios Current Ratio Book Debt-Equity Ratio Market Debt-Equity Ratio Interest Coverage Ratio 2.52 0.62 0.38 26.99 2.53 0.77 0.43 0.03 2.90 0.97 0.49 -2.20 2.92 1.01 0.50 -4.48
compare the valuation ratios of the two firms. how do you interpret the difference between them?
how has enterprise value for the firms changed over the 4 years?


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