finance 5

 Deliverable Length:  8-10 pages (body of paper) 

Financial  ratios are the principal tool of financial analysis. Ratios standardize  the financial information of firms so comparisons can be made between  firms of varying sizes. Choose two firms in the same sector; locate  their current financial information both in terms of current financial  statements and stock market prices. With the information, do a paper  of 8-10 pages, with the following headings:

1. How liquid are the firms?  
2. Are the firm's managers generating adequate operating profits on the company's assets?  
3. How are the firms financing their assets?  
4. Are the firm's managers providing a good return on the capital provided by the shareholders?  
5. Are the firms’ managers creating shareholder value?