Vertical Analysis

For this activity you will select four Publicly Traded Companies to analyze side by side and tell me which one of the four companies you’d invest your $1 million and why.  You are required to calculate and analyze the following items for all four companies to compare to make your decision:

Liquidity ratios: Current ratio, Quick ratio, # days in inventory, and # of days in A/R (average collection period)

Solvency Ratios: Debt to Equity ratio

Profitability Ratios & Vertical Analysis: Gross Profit %, Profit Margin %, Return on Assets, Return on Equity

Horizontal Analysis: % change and $ change in Total Sales; % change and $ change in Net Income

Cash Flows: $ amount of increase or decrease in cash flows from operating activities