Research/Ratio Assignment:Choose two competitor companies that are U.S. GAAP publicly traded companies. Determine and compare their net profit margin and debt to asset ratio for the most recent year reported. Interpret the information and support your answer. The PDF version of each company's annual report or Form 10-K researched must be attached to your posting.
To complete this research/ratio assignment, follow these steps:
1. Identify competitor companies: Select two U.S. GAAP publicly-traded companies that are competitors in the same industry. For example, you can select Apple Inc. and Samsung Electronics Co Ltd. as technology competitors. Ensure that both companies have publicly available annual reports or Form 10-K filings for the most recent year.
2. Find the annual reports or Form 10-K filings: To locate the annual reports or Form 10-K filings for the chosen companies, you can follow these steps:
a. Visit the company's official website.
b. Look for an "Investor Relations" or "Financial" section on the website.
c. In that section, you should find links to the company's annual reports or Form 10-K filings.
d. Download the PDF versions of both companies' annual reports or Form 10-K filings.
3. Calculate net profit margin: Net profit margin is calculated by dividing the net income by the total revenue and multiplying by 100 to express it as a percentage. Refer to the income statement or financial statement in the annual reports to extract the required values.
Net Profit Margin = (Net Income / Total Revenue) * 100
4. Calculate debt to asset ratio: The debt to asset ratio is calculated by dividing the total liabilities by the total assets. Refer to the balance sheet or financial statement in the annual reports to find the necessary values.
Debt to Asset Ratio = Total Liabilities / Total Assets
5. Interpret and compare the information: Once you have the net profit margin and debt to asset ratio for both companies, interpret and compare the results. Consider factors such as industry standards, historical trends, and any other relevant information to support your interpretation.
6. Prepare your answer: Use the information obtained and your research to formulate your answer in a clear and concise manner. Include any attachments required in the assignment instructions, such as the PDF versions of the annual reports or Form 10-K filings.
Remember to properly cite any references used in your answer to maintain academic integrity.