Choose two companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them. Share your analysis and answer the following questions in a minimum of 175 words:
- What did your analysis tell you about these companies?
- What sorts of decisions would this analysis help you make; such as buying stocks, considering accepting an employment offer,etc.?
RESPOND TO RODRIGO AND BAILEY POST BE CONSTRUCTIVE AND PROFESSIONAL.
The two companies I chose to look into are Microsoft and Apple Inc, as it is a divided discussion in my house (which one is best, I prefer Microsoft but my wife loves Apple). Both of these companies operate within the technology and IT industry, and hardware. For the 2019 fiscal year, Microsoft delivered more than $125 billion in revenue, $43 billion in operating income and more than $50 billion in operating cash flow, and a gross margin expanding to 63 percent.
Apple Inc reported a total net sales of $260.17 billion for 2019.
In 2019, Microsoft had a working capital ratio of 5.42, and Apple Inc 1.6.
So although Apple has a higher capital, Microsoft has a higher working capital ratio to better pay off its debts quicker.
As of 2019, Apple’s EPS (earnings per share) was a total of $1.25, while Microsoft reported an EPS of $5.06.
If I were looking into these two companies for stocks or employment, based of these I would definitely go for Microsoft. Although the net income was less than Apple, their EPS are worth much more and they have a less debt to income ratio than Apple as well.
I selected two name brand companies, Amazon and Walmart, as they are both in the market for selling products either in person or online. I wanted to compare these stores as Walmart has a very heavy in person experience, while Amazon has a heavy online experience. I completed the cash ratio, total debt ratio and the debt to equity ratio to compare the two companies.
Ratio Amazon Walmart
Cash 1.13% 1.52%
Total Debt .71 .67
Debt to Equity .29 .34
From the results above, I found that Walmart has more liquidity than Amazon does, thus being able to payoff short term date more easily. Walmart also has a better total debt ratio meaning they are mostly funded by equity and do not need to lean so heavily on their assets. Finally, Amazon has the better debt to equity ratio, which reduces the risks to shareholders when investing.
Based on my findings, I would feel more comfortable working for a company like Walmart, as they do not depend so heavily on their sales to pay off their debt. However, as an investor, I would be more likely to invest in Amazon because their debt to equity ratio is lower and will reduce the risk I would lose my money by investing.
Overall, the numbers from each company are extremely close, and both have been rooted in their industry long enough to handle their debt, assets and equity of the entire company.
RESPOND TO MATTHEW AND SHERRI IN 75 WORDS BE CONSTRUCTIVE AND PROFESSIONAL
Knowing your audience is extremely important at any time no matter what the presentation format is. If you know your audience well you know how receptive they are to creativity or any other “extra” items you may want to add. Some audiences only want the facts and to be straight to the point. The reasons for that may differ individuals who are attending your presentation may be pressed for time or they could be fact oriented types. While others may require extra information and the implementation of some detractors. Some individuals need humor and irregularities to stay focused and to understand your presentation with increased effectiveness. Age, working relationships, familiarity and the purpose of the presentation are all factors to consider to name a few. The presentation could be a speech, a power point presentation, an excel presentation even a combination in email format. Either way knowing who you want to reach and how they might receive it is essential. The presentation could have minimal visuals and be accompanied by a lot talking or I have even seen power points that for the most part presented themselves. I have seen these work for some and not for others. The ones that did not work most of the time was a direct result of the presenter not fully being aware of their audiences.
There are a few things that can help you with the audience of your PowerPoint presentation. First who are you presenting too, is this a voluntary sign up if your interested presentation or a work/school required presentation for your audience to go to. Then what is the theme. Start off with information that will get the audience attention and hopefully keep it once you have it. You need to find out or know, if the information you want to give is better in a graph, pie chart or a diagram. You want to have a consistent and a good flow of information. I like to see charts and graphs when I am watching information regarding numbers rather than watching a bunch of numbers in text that the presenter reads to me. Pictures are always helpful, and I also believe you have to engage with the audience with conversational information not just looking at a overhead or just graphs take a break between the information on PowerPoint and then go back to the Power Point information. One of the most important things is to know your information you are presenting; you don’t want to be questioned and jeopardize your creditability of your presentation.