FIN 550_Worksheet_IO

.xlsx

School

Harford Community College *

*We aren’t endorsed by this school

Course

115

Subject

Management

Date

Jan 9, 2024

Type

xlsx

Pages

9

Uploaded by sleenv

RATIO ANALYSIS Note: change the column names to your industry and selected companies RATIOS Home Improvement Lowe's Gross Margin 34.31% 33.30% EBITDA Margin 16.27% 13.82% Operating Margin 14.10% 12.76% Pre-Tax Margin 13.59% 11.75% Effective Tax Rate 24.78% Financial Strength Quick Ratio 0.14 0.17 Current Ratio 1.28 1.13 LT Debt to Equity Total Debt to Equity 0.17 Interest Coverage 16.23
Valuation Ratios Price/Earnings Ratio 17.21 16.1 Price to Sales P/S 1.69 1.37 Price to Book P/B 87.71 Free Cash Flow per Share 15.56 14.15 Management Effectiveness (%) Return On Assets 18.13% 17.70% Return On Investment 87.11% 31.28% Return On Equity 364.84% Efficiency Receivable Turnover 31.04 Inventory Turnover 4.1 3.44 Total Asset Turnover 1.85 2 Free Cash Flow/Net Income What is Ratio Analysis? Briefly explain and cite your resources: Ratio analysis is a financial a company's profitability, liquidity, solvency, and operational efficiency. Common ratios in decision-making and performance benchmarking.
decision-making and performance benchmarking. References: Brigham, E. F., & Houston, J. F. (2018). Fundamentals of Financial Management. Cengage L Based on the ratio analysis above, in which company would you be willing to invest and w lower P/E ratio which suggestsa more attractively priced stock, a higher inventory and tot Baker, B. (n.d.). What is the price-to-earnings ratio and how is it used?. Bankrate. https://w Beaver, S. (2022). When to use quick ratio. Oracle NetSuite. https://www.netsuite.com/po Beers, B., Costagliola, D., & Howard, E. (2022.). How is asset turnover calculated?. In Fernando, J., Brock, T., & Clarine, S. (2022, July 11). Current ratio explained with formula a Fernando, J., Drury, A., & Ecker, J. (2022, October 18).Price-to-Book ratios Formula, and Ex Fernando, J., Kindness, D., & Munichiello, K. (2022, June 27).Inventory Turnover, hat It Is, Fernando, J., Mansa, J., & Clarine, S. (2022, June 27).Return on Equty and What It Means. Fernando, J., Mansa, J., & Kvilhaug, S. (2022, June 30).Return on Investment, How to Calcu Fernando, J., Mansa, J., & Rathburn, P. (2022, August 10).Debt-to-Equity Formula and How Hargrave, M., James, M., & Eichler, R. (2022, June 14).Return on Assets and "Good" ROA D Hargrave, M., Kindness, D., & Kvilhaug, S. (2022, June 29).Price-to Sales(P/S) Ratio: What I Hayes, A., James, M., & Munichiello, K. (2022, June 17).Interest Coverage Ration Formula, Hayes, A., James, M., & Perex, Y. (2022, June 18).Operating Margin Formula for Calculatin Johnson, S. (2022, June 29).What Is EBITDA?Business News Daily.wsdaily.com/4461-ebitd Kenton, W., & Mansa, J. (2021, May 31).Free Cash Flow Per Share.www.investopedia.com
Home Depot 33.535 17.21% 15.30% 14.40% 24.49% 0.1 1.11 -71.16 -75.16 18.26
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help