Compare the financial health of two public companies

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Reference no: EM133251832

Question - Evaluate and compare the financial health of two public companies in the same industry with ratio analysis.

Consider the two companies, Walmart and Tiffanys. Both companies operate in the retail sector but Walmart is a Consumer Staple Company and Tiffanys is a Consumer Discretionary Company. In order to evaluate the financial health of both companies, one can analyze the Return on Equity (ROE) of each firm.

Please calculate the ROE for both firms over the last 3 years and evaluate the trend of each company's ROE over this time period. Determine whether the trend in the ROE is improving, declining or remaining stagnant.

Futhermore, perform a deeper dive into the ROE calculation with additional calculations and analysis of each company's Profit Margin, Asset Turnover and Financial Leverage. Which of these three components added or detracted to the ROE?

Finally, compare the financial health of both companies and report on the factors that influenced the ROE of each company.

Refer to Yahoo Finance (Links to an external site.) for the income statements and balance sheets for each company.

Reference no: EM133251832

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