Ommentary on Worksheet Ratios and Summary
I already did the calculations to the ratios. I need the second two parts done.
Interpretation and comparison between the two companies ratios (reading the Appendix of Chapter 13 will help you prepare the commentary).
You all get the chance to play the role of financial analyst below. The summary should be a comparison of each companys performance for each major category of ratios (liquidity, solvency, and profitability) listed below. Focus on major differences as you compare each companys performance. A nice way to conclude is to state which company you feel is the better investment and why.