Solution-Compute the profit margin ratio for each company

Compute the profit margin ratio for each company

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Reference no: EM132540268

You work in the mergers and acquisitions department of a large conglomerate who is looking to invest in a retail business. Two companies, Fashion Forward and Dream Designs, are the final two options being considered. You have the most recent available income statements and two years of balance sheets for each company.

Question 1: Compute the following ratios for each company:

Profit Margin Ratio
Return on Assets
Current Ratio
Quick Ratio
AR Turnover Ratio
Average Collection Period
Inventory Turnover Ratio
Average Sales Period
Debt to Equity Ratio

Question 2: For this assignment:Compute all required amounts and explain how the computations were performed

Evaluate the results for each company and explain what each ratio means
Compare and contrast the companies.

Question 3: Based on your analysis: recommend which company the organization should pursue Thoroughly support your conclusion, including what other factors should be considered Be specific.

Reference no: EM132540268

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Compute the profit margin ratio for each company

Reference no: EM132540268

Reference no: EM132540268

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