Pick a competitor of the firm and obtain its latest annual report. Compare the two...

80.2K

Verified Solution

Question

Accounting

Pick a competitor of the firm and obtain its latest annual report. Compare the two companies financial statements. If you were making a decision to invest in one of the two companies, which company would you choose? Why?

I have already compute the ratios needed,but I don't know how to compare.So please help me compare those number of the two companies,this is a written project so deeply analyze please,thank you

My TA said that,at our level we do not have to decide which company to invest,we just have to compare to have an overview of the financial picture of two companies only.We can compare the ratios of two companies(fixed asset turnover,A/R turnover,...), the cashflow,profit margin,pay dividend,... which company operates more effectively.This is just the hint the TA gave me

imageimageimage

MWG COMPANY(COMPETITOR) FPT COMPANY(BASED COMPANY) 15,292,127,763,064 8,722,878,985,489 86,516,287,002,499 23,213,536,857,725 Gross Profit margin 18% 38% 3,774,182,412,336 3,799,831,155,588 86,516,287,002,499 23,213,536,857,725 Operating margin 4% 16% 2,880,309,060,133 3,233,997,141,045 23,213,536,857,725 86,516,287,002,499 Net profit margin 3% 14% 23,371,994,756,394 18,406,087,226,041 17,929,433,003,626 14,451,149,990,521 Current ratio 1.30 1.27 23,371,994,756,394 18,406,087,226,041 17,929,433,003,626 14,451,149,990,521 Working capital 5,442,561,752,768 3,954,937,235,520 19,139,496,155,514 14,982,096,384,457 8,983,035,331,342 14,772,220,765,111 Debt to equity ratio 2.1 1.0 8,983,035,331,342 14,772,220,765,111 28,122,531,486,856 29,757,067,149,568 Shareholder equity ratio 32% 50% 2,880,309,060,133 3,233,997,141,045 8,983,035,331,342 14,772,220,765,111 Return on equity 32% 22% 86,516,287,0002,499 25,472,597,851,038 23,213,536,857,725 27,378,372,022,717 Asset turnover 3.40 0.85 23,371,994,756,394 18,406,087,226,041 17,929,433,003,626 14,451,149,990,521 Working capital 5,442,561,752,768 3,954,937,235,520 19,139,496,155,514 14,982,096,384,457 8,983,035,331,342 14,772,220,765,111 Debt to equity ratio 2.1 1.0 8,983,035,331,342 14,772,220,765,111 29,757,067,149,568 28,122,531,486,856 Shareholder equity ratio 32% 50% 2,880,309,060,133 3,233,997,141,045 8,983,035,331,342 14,772,220,765,111 Return on equity 32% 22% 86,516,287,002,499 23,213,536,857,725 27,378,372,022,717 25,472,597,851,038 0.85 Asset turnover 3.40 14,490,657,872,236 71,224,159,239,435 17,446,005,298,981 14,748,083,974,982 12,050,162,650,982 1,180,449,819,969 Inventory Turnover ratio 12.28 3,786,318,568,918 28,122,531,486,856 3,857,602,555,206 25,472,597,851,038 22,822,664,215,220 27,378,372,022,717 Return on total asset 15% 14% MWG COMPANY(COMPETITOR) FPT COMPANY(BASE COMPANY) Net cash flows from operating activities 2,261,134,531,069 3,588,320,092,336 Net cash flows used in investing activities -3,696,731,561,429 -2,344,394,040,332 Net cash generated by/(used in) financing activities 553,479,160,598 421,719,356,776

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students