Out of these three companies, which company is doing better and why?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 12SP
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Out of these three companies, which company is doing better and why?

Companies
1
2
3
Net Profit Margin
28.68% 59.68%
19.55%
ROA
11.11% 55.22%
10.22%
ROE
28.22%
109.61%
26.54%
Current Ratio
1.39
1.35
1.34
Quick Ratio
1.09
1.22
1.03
Fixed Asset
4.81
17.81
5.03
Total Asset
.39
.93
.52
Turnover
Financial
2.37
2.07
2.55
Leverage
Debt / Equity
.46
.03
.43
Ratio
Equity Multiplier
1.46
1.03
1.43
Transcribed Image Text:Companies 1 2 3 Net Profit Margin 28.68% 59.68% 19.55% ROA 11.11% 55.22% 10.22% ROE 28.22% 109.61% 26.54% Current Ratio 1.39 1.35 1.34 Quick Ratio 1.09 1.22 1.03 Fixed Asset 4.81 17.81 5.03 Total Asset .39 .93 .52 Turnover Financial 2.37 2.07 2.55 Leverage Debt / Equity .46 .03 .43 Ratio Equity Multiplier 1.46 1.03 1.43
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