Locate or calculate at least 5 key ratios from your company’s main competitors. Compare your company to the competition and explain which company is performing better.

1. Revenue Growth: Companies often measure revenue growth by looking at the sales over a period. A company that has 200 million in revenue during the quarter 2021 would see its revenue grow at 11% if it had $180 millions in revenue for Q2 2020.

Company A: 10 %
Company B: 15%
Company B has better results than Company A because it experiences higher revenue growth.

2. Profit Margin is a measure of the percentage of every dollar made that turns into net income. It’s calculated by dividing net income by total sales revenues for a given period of time (e.g., quarterly or annually).

Company A: 4 %
Company B: 7 %
Conclusion: Company C is doing better because of its higher profit margin than Company A.

3. ROA (Return on Assets): This is how a company uses its assets to make profits. It can be computed by subtracting net income from total assets over a period of time (e.g. quarterly, annually).

Company A: 8 %
Company B: 12%
Conclusion: Company A is not performing as well as Company B, which has a higher return on its assets than Company B.

4. Debt-to-Equity Ratio (D/E): The D/E ratio indicates how well a company uses debt financing versus equity financing — i.e., whether investors are more likely to lend money or invest in the business itself rather than selling stock shares directly to consumers and other businesses alike — as well as examining financial health and stability over time periods such as quarters or years..

Firma A 0.50
Company B 0.45 Conclusion. Company B performs better than Company A because they have a lower debt-to-equity ratio. This means that they are able to use less leverage for financing.

5 Earnings Per Share (EPS): EPS measures the earnings generated per share of stock outstanding during any given period of time – usually yearly or quarterly – and can be used both within an industry and across industries for comparison purposes..

A company A: 3$
Bonus – Market Capitalization : Market capitalization captures the size of your organization relative to that of competitors based on current market prices..                                                                                                                           CompanyA : 25B
CompanyB: 50B
The conclusion: Company B performs better because of its larger market cap than companya

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