Performances of blackburn corporation

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Reference no: EM133001014

You have been assigned as an analyst for comparing the performances (cross sectional analysis) of Blackburn Corporation with Delta Corporation during the year 2019; Both the companies have provided the following information:

Ratio Blackburn Delta

ROE 0.076 0.042

ROA 0.51 0.50

P/E Ratio 10.5 10

Market Book Ratio 4 2

Inventory Turnover 4.4 5.1

Debtors' Collection Period 20 days 18 days

Leverage Ratio 0.37 0.44

Net Profit Margin 0.082 0.054

Total Asset Turnover 0.94 0.79

Current Ratio 1.32 1.46

Quick Ratio 0.4 0.8

Times Interest Earned 5.6 3.3

EPS 3.26 1.81

Required:

Compare the performances of these two companies based on:

  • Liquidity
  • Financial Risk
  • Efficiency
  • Profitability
  • Market Position

Reference no: EM133001014

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