Case Studies in Financial Management Economic / Finance 240: Project 2 Six Company Evaluation Spring 2024
Please select six firms that are in the industry that you were assigned by Dr. Peters. You will need to provide me a copy the Value Line Pages for the firms that you are using for your analysis. Perform the following ratio analysis and provide me with a report of your findings. Data used must be from the last 3 months and must be the most current data from the Value Line Investment Survey as of February 29, 2024
Your Analysis
Perform the following research on the firms that you have selected:
1) Construct or collect the following ratios for the firms that are under your consideration.
a) Current Ratio
b) Quick Ratio
c) Inventory Turnover
d) Days Sales Outstanding
e) Debt Ratio
f) Fixed Asset Turnover Ratio g) Total Asset Turnover Ratio h) Earnings Per Share
1) TIE Ratio
j) Profit Margin on Sales
k) Basic Earning Power
l) Return on Total Assets
m) Return on Common Equity n) Price Earnings Ratio
o) Book Value Per Share
p) Market/Book Ratio
2) Compare these ratios between firms. Highlight in Green the firm that has the best ratio for any given metric. Does any one firm have better performance on average? Is there any substantial reason why that firm is performing strongly?
3) Report the Timeliness, Safety and Technical Ranking in your spreadsheet. Please comment on the general Value Line ranking of these 6 firms.
4) Select a firm that you would consider investing in based upon your analysis. Please give an 8-page write-up on the reason for your selection of this firm. What are your expectations regarding the price of this stock and it’s earnings for the next two years?
5) Submit you report and the Value Line Pages in a single document. Your report is due on April 29, 2024 at 12:20 PM