Create a full analysis between two different companies in the same industry (IBM and Intel, OR Apple and IBM, OR Apple and Samsung) kindly choose what you prefer. Please ensure that you fully explain all calculations and that you answer every question thoroughly. You will need to locate information about the two companies’ annual financial statements for the most recent year available. I will attach their latest reports.
Your analysis should address the following items:
What are the primary lines of business of these two companies as shown in their notes to the financial statement?
Which company has the dominant position in their industry?
What are the gross profits, operating profits, and net income for these two companies?
Compute both companies’ cash coverage ratio, current ratio, and free cash flow.
What ratios do each of these companies use in the Management’s Discussion and Analysis section of the annual report to explain their financial condition related to debt financing (meaning you MUST find each of the two firms’ annual reports)?
What are the gross profits, net income, EBIT, EBITDA and free cash flow (FCF) for these two companies?
For both companies, compute:
current ratio;
quick ratio;
total debt ratio;
debt-equity ratio;
total asset turnover;
inventory turnover;
days sales in inventory;
profit margin on sales;
return on assets; and
return on equity.
Fully explain what each ratio is telling you (NOT just a definition), but relevant to your firms.