Question

Balance Sheet Info Company 1 Company 2 Company 3 Company 4 Company 5 Total Assets $15M...

Balance Sheet Info Company 1 Company 2 Company 3 Company 4 Company 5
Total Assets $15M $2.2B $560M $44B $400M
Total Liabilities $14M $1.9B $600M $18B $20M
Total Equity $1M $300M $-40M $26B $380M
Income Statement Info
Sales $9M $3B $400M $25B $320M
Gross Profit $7M $1B $300M $6B $318M
Operating Profit $3M $250M $-50M $3B $275M
Net Profit $2M $175M $-50M $2B $200M
Net Profit Margin 3 years ago N/A (company didn't exist) 5.6% -26.9% 14.7% 74.2%
Current Share Price $1.65 $84.00 $8.57 $365.94 $161.88
Share Price 3 years ago N/A (company didn't exist) $78.00 $32.59 $299.44 $74.66
Dividend Yield 0% 4% 0.3% 0.2% 2.2%

Which company would be the the best company to invest into any why?

Homework Answers

Answer #1
Company 1 Company 2 Company 3 Company 4 Company 5
Total assets $15M $2.2B $560M $44B $400M
Equity $1M $300M $-40M $26B $380M
% OF EQUITY 6.66% 7.33% -7.14% 59.09% 95%
Net profit margin (net profit/sales)
22.22% 5.83% -12.50% 85.00% 62.50%
current share price $1.65 $84 $8.57 $365.94 $161.88
Price (3 years ago) N/A $78 $32.59 $299.44 $74.66
average increase in 3 years N/A 2% -8.01% 22.17% 29.07%
(current price-price before 3 years)/3
Decision- We will choose company 5, because it has highest % of equity composition,better net profit margin and maximum increase in share pricein last 3 years.
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