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...

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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.?

Answered Same DayFeb 25, 2021

Answer To: Choose two companies in the same industry whose financial statements are available online. Complete...

Riddhi answered on Feb 25 2021
143 Votes
Financial statements of General Motors Company and Ford Motor Company are selected. Both the companies are in the same industry of manufacturing and selling cars. We are reviewing financial statements for 2019.
Financial Ratios for both the Companies are as follows –
    Particulars
    General Motors Company
    Ford Motor Company
    Ideal Ratio
    Current Ratio
    =74,992/84,905 = 0.88
    1,14,047/98132 = 1.16
    1.2:1
    Return on assets
    =6,667/2,28,037 = 2.9%
    84/258537 = 0.3%
    5%
    Cash ratio
    =19,069/84,905 = 0.22
    17,504/98132 = 0.178
    0.5:1
    Debt ratio
    =1,82,080/2,28,037 = 0.798
    225307/258537 = 0.87
    0.4:1
    Operating margin ratio
    =1,31,756/1,37,237 = 96%
    574/155900 =...
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