financial statement analysis compare ford and ferrari – BRAINY ESSAY WRITERS | brainyessaywriters.com
Four questions in comparing Ford and Ferrari. Data is provided. No need to search anything, all information is there.
Please please show all work as I would like to follow along and try to understand what was done.
Side notes to help better understand whats done is appreciated!
Question 1 â€“ Valuation and Financial Ratios
Using the data provided, calculate the following valuation measures and financial ratios for both firms and present your results in a table similar to the one below:
Question 2 â€“ Interpretation
A) Based on the market-to-book ratio, which firm arguably resembles a growth firm more closely?
B) Based on the debt management ratios you calculated, which firm operates with a higher leverage?
C) When comparing the return on capital between these two firms, is it more appropriate to compare them based on their ROEs or the ROICs? Explain your answer.
Question 3 â€“ DuPont Equation
A) For each firm, break down the ROE using the DuPont equation for both firms. Please present your results in a table similar to the one below.
B) Briefly explain why the ROE of Ford differs from the ROE of Ferrari.
Question 4 â€“ Cash from Operations
Suppose the working capital of Ford and Ferrari for 2017 were as follows:
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