How to do analysis of financial performance using financial

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Reference no: EM1310528

How to do Analysis of Financial performance using financial ratios.

You have the following information taken from a 1996 financial statement of Computronics Corporation and Digitek Corporation (all figures are in the $ millions except for share amounts. Compare and contrast the financial performance of the 2 companies using financial ratios discussed.

All figures in millions

Computronix

Digitek

Key Assumptions

1996

1996

Dividend Payout

40.0%

20.0%

Number of Shares

200

100

 

 

 

Income Statement

1996

1996

Sales

$3,379.3

$4,537.0

EBIT

$317.6

$403.1

Interest Expense

$54.7

$4.8

Net Income

$153.7

$239.0

 

 

 

Balance Sheet

1996

1996

Average Assets

$2,457.9

$3,459.7

Average Shareholders' Equity

$1,113.3

$2,347.3

 

 

 

Market Data

 

 

Market Price / Share at Beginning of Year

$15.00

$38.00

Market Price / Share at End of Year

$12.00

$40.00

Reference no: EM1310528

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