5. Click on the Show Chart link to the right of the company name and description. Select the monthly share price graph and take a screen shot. Include the screen shot in your submission. Describe what has happened to the share price in the last year
I chose the Company Avon, and since last year, the shares on the graph have seemed to have dropped.
h t t p : // w w w .weseed . c o m/company/avp-avon-products-inc#month
The other Part-----------------------
Now that you’ve analyzed a company based on its financial statement, let’s compare two companies. Choose two related companies to answer the questions below (for example: Toyota & Honda, Apple & Microsoft).
Questions:
1. What two companies did you choose? How are they related?
I chose the companies JACK(Jack In The Box Inc.) and WEN(Wendy's/ Arby's Group)
~Im not really sure if these companies are related, are they? And how? They are both restaurants, that provide burgers and all.
2. Which of your companies do you think has the better financial performance? Why?
I heard that Jack in the Box does, but I'm not sure.
3. Look up the three ratios for each company (P/E, ROE, and Pre Tax Profit Margin) and record them in a table.
Jack in the Box:
P/E = 15.5
ROE = 13.5
Pre Tax Profit Margin = 4.6
Wendy's:
P/E = 24.9
ROE = 8.3
Pre Tax Profit Margin = 5.1
4. How might comparing financial statements and company performance help you to make investment decisions? Which of your companies would you invest in? Why?
Well you can find out which company makes higher profits. Just learning about this stuff, so what else?
I guess I would probably invest in Jack in the Box because its better with the ROE.
You have now posted this identical text three times and haven't received a response yet. That usually happens IF all the tutors who read it don't have the expertise to give you a valid response.
I'm sorry, but we don't have tutors to cover all possible subject areas.
I only need to companies that are related, and I just need to know which one is Financially better.
Writeacher do you know of any companies that are related to one another?
Do you mean owned by the same people?
Abercrombie & Fitch and Hollister are two that are owned by the same people. I think A&F is the parent company.
There are lots of competing companies, too.
http://www.google.com/search?hl=en&client=firefox-a&hs=3GQ&rls=org.mozilla%3Aen-US%3Aofficial&tbs=nws%3A1&q=abercrombie+%26+fitch+hollister+gap&aq=f&aqi=&aql=&oq=
Here is one place where you can look up how different companies' stocks are doing:
http://www.investors.com/NewsAndAnalysis/Article/566588/201103181850/Banks-Hike-Dividends-On-Fed.htm
Enter JACK or WEN or whatever you need to look up -- near the top right corner.
Yeah I mean owned by the same people. Thank you so much. Okay I will use those two then. Do you know which one if financially better out of these too, Im thinking that A&F is.
I would think A&F is since it has a Kids spin-off, too. You'd have to dig around and find financial info, though.
1. To analyze the share price movement of the company Avon in the last year, follow these steps:
- Go to the website mentioned: h t t p : // w w w .weseed . c o m/company/avp-avon-products-inc#month
- Look for the company name Avon and click on the "Show Chart" link located to the right of the company name and description.
- From the options provided, select the "monthly share price graph."
- Take a screenshot of the share price graph and include it in your submission.
- Analyze the graph to determine what has happened to the share price in the last year. In this case, if you observed that the share price has dropped, you can mention that in your answer.
2. Regarding the choice of the two related companies, JACK (Jack In The Box Inc.) and WEN (Wendy's/Arby's Group):
- Yes, these two companies are related as they are both in the restaurant industry, specifically fast food chains that provide burgers and other food items.
3. To find the three ratios (P/E, ROE, Pre Tax Profit Margin) for each company, follow these steps:
- Search for the financial information of JACK and WEN. You can use financial websites like Yahoo Finance or company annual reports.
- Locate the P/E ratio, ROE percentage, and Pre Tax Profit Margin for each company.
- Record these ratios in a table for comparison.
4. Comparing financial statements and company performance can help make investment decisions by providing insights into the profitability, efficiency, and overall financial health of the companies being analyzed. When comparing the financial ratios of JACK and WEN:
- Jack in the Box has a P/E ratio of 15.5, higher ROE of 13.5, and a Pre Tax Profit Margin of 4.6.
- Wendy's has a P/E ratio of 24.9, lower ROE of 8.3, and a Pre Tax Profit Margin of 5.1.
Based on these ratios, you mentioned that you would invest in Jack in the Box because of its better ROE (Return on Equity) compared to Wendy's. However, it is important to consider other factors and conduct further analysis before making any investment decision.