Description
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Explanation & Answer
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RATIO ANALYSIS
Note: Please change the column names based on your industry and your selected companies.
RATIOS
Personal and Household Products
Proctor and Gamble
Profitability Ratios (%)
Gross Margin
EBITD Margin
55%
20.10%
48.48%
24.24
Operating Margin
Pretax Margin
Effective Tax Rate
16.50%
15.05%
22%
20.52%
19.94%
19%
0.36
1.19
0.64
0.19
19.53
0.59
0.83
0.28
0.41
27.33
22.51
3.2
6.58
6.46
16.36
17.64
24.0
3.6
4.5
4.2
16.4
18.59
7.61%
16.6
22.66%
7.95%
11.49%
17.98%
2.26
18%
3.57
73.30%
$410,029
$44,938
8.4
5.9
0.73
$726,434
$105,978
14.4
7.32
0.56
Financial Strength
Quick Ratio
Current Ratio
LT Debt to Equity
Total Debt to Equity
Interest Coverage
Valuation Ratios
P/E Ratio
Price to Sales (P/S)
Price to Book (P/B)
Price to Tangible Book
Price to Cash Flow
Price to Free Cash Flow
Management Effectiveness (%)
Return On Assets
Return On Investment
Return On Equity
Dividends
Dividend Yield
Payout Ratio
Efficiency
Revenue/Employee
Net Income/Employee
Receivable Turnover
Inventory Turnover
Asset Turnover
Summary
What is ratio analysis? Briefly explain in this space, and reference your resources:
Ratio analysis is the process of examining and comparing the financial information presented in the financial statement of a c
By performing a ratio analysis, the bulky financial information presented in the financial statements can be presented in an ea
operations can be determined. A trend analysis to show how financial performance changed from one period to another can
compared to its rivals and also relatively to the overall industry in which it operates in.
The reasons for performing ratio analyis in an organization may include the following:
1. Comparing performance of different organizations: Given the fact that organizations are different in sizes, it would be misle
is doing compared to other firms in the industry and also enables performance comparison in different yea...