Comparing Financial Ratios
Go to MSN Money (Links to an external site.)Links to an external site.. (http://investing.money.msn.com/investments/key-ratios) and type in a ticker symbol for a company with the first letter of your last name.
Next, complete the following:
- On the company page that you selected click on the “Analysis” tab. After doing so, scroll down the page until you see the Financial ratios for the company and the industry.
- There are several categories listed for ratios. Select one “Financial Condition Ratio” and one “Management Efficiency Ratio”.
- Also on the company page, on the same ribbon that you found the “Analysis” tab you will find the “Related” tab. Click on it and select a competitive company within that industry and compare those ratios to the ones you just found.
Examine your findings and determine whether your company outperforms its competition based on financial ratios. Identify where your firm seems to lag. Describe how your firm compares with the industry and speculate as to why you believe your firm is performing as it is.
Guided Response: Review the financial ratios provided by your classmates. Do any seem unusual? Respond to at least two classmates by sharing any reasons you can provide to explain the variance in the ratios. Support your reasons with evidence.