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FIN - Take the role of an investment analyst

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Question;PART A: Take the role of an investment analyst at YYYY Company. It is your job to recommend investments for your client. The only information you have are the following ratio values for two companies in the graphics software industry. Write a report to the XXXXX XXXXX investment committee. Recommend one company's stock over the other. State the reasons for your recommendation. (see attached image);Ratios;Graph Tech Inc.;Core Sortware CompanyDays sales in receiveables;51;43Inventory Turnover;9;7Gross Profit Percentage;62%;71%Net Income as a percent of sales;16%;14%Times-interest-earned;12;18Return on equity;29%;36%Return on assets;19%;14%;PART B: b. You are analyzing ABC Company, a computer manufacturer. You notice that accounts receivable turnover this year is significantly lower than prior years. Provide three explanations that would be consistent with this observation. Explain whether these would be of concern to you.

 

Paper#50544 | Written in 18-Jul-2015

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