3.6 Paper1. Construct an evaluation of the company’s financial strengths and weaknesses, based on a ratio analysis of at least the last three years’ financial statements for Philips Healthcare. a....

Ratio Analysis of Phillips Healthcare
Student Name
22nd March 2023
Philips Healthcare is a leading healthcare technology company that focuses on improving people’s lives through meaningful innovation. The company is a leader in the medical device and healthcare IT markets, delivering solutions to healthcare providers, and patients. Financial ratios are a gauge of the overall financial health of an organization. Utilized to assess and evaluate the liquidity, solvency, efficiency and profitability of a firm, these ratios offer key financial insights. In the following analysis, we will compare the financial ratios of Philips Healthcare with two of its main competitors, LG and GE.
Following table of ratios creates a comprehensive comparison of Philips Healthcare, LG, and GE along key metrics:
    Ratio
    Philips Healthcare
    LG
    GE
    
    2022
    2021
    2020
    2022
    2022
    Current Ratio
     1.29
     1.39
     1.45
     0.94
     1.16
    Long-term Debt / Capital
     0.35
     0.31
     0.32
     0.37
     0.43
    Debt/Equity Ratio
     0.62
     0.48
     0.58
     0.86
     0.86
    Gross Margin
     40.35
     41.78
     44.95
     17.76
     27.45
    EBITDA Margin
     8.03
     11.02
     16.41
     22.53
     11.71
    Net Profit Margin
    - 9.02
     19.35
     6.08
     4.46
    - 0.08
    ROE - Return On Equity
    - 12.18
     4.23
     10.12
     ...