After reading and understanding Financial Ratios from Chapter 8 in your textbook, we want to compare balance sheet financial ratios of companies we use that information to understand them BETTER!:
You may use the Internet for this assignment.
Try for example
https://finance.yahoo.com/
and select separately TWO companies of which you are interested or familiar.
For EACH company
on the yahoo finance website AFTER selecting then proceed way down on the left hand column and select Balance Sheet under FINANCIALS for finding the balance sheets for each of the TWO companies.
For which companies you may want to consider choosing either two SIMILAR companies, such as Pfizer Inc and Johnson & Johnson, or two DIFFERENT industries, such as an airline and a car manufacturer.
YOUR ASSIGNMENT:
Use percentages to analyze these balance sheets, and compare how well each is doing to each other AND compared to The Greasy Spoon Diner example from this chapter.
Use ratios/percentages to calculate EACH of their balance sheet ratios which should include:
1) quick, 2) current, and 3) the debt ratios as described in our textbook.
THEN NEXT AND MOST IMPORTANT discuss which ratios have improved, by how much and their significance.
(Remember a lower ratio number sometimes can be better than a higher ratio number.)
