.Write an overall conclusion on which of these two (2) networks giants fared better? Which company would you rather invest in? Why? 2.Write a recommendation to the management of the other network giant which fared worse. By referring to the ratios computed, what can you recommend so that management could improve? The proposal should summarize the significant ratios selected and explain why you chose to highlight those ratios.
.Write an overall conclusion on which of these two (2) networks giants fared better? Which company would you rather invest in? Why? 2.Write a recommendation to the management of the other network giant which fared worse. By referring to the ratios computed, what can you recommend so that management could improve? The proposal should summarize the significant ratios selected and explain why you chose to highlight those ratios.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter28: The Balanced Scorecard And Corporate Social Responsibility
Section: Chapter Questions
Problem 1PA: Instructions 1.Label each element of the balanced scorecard. 2.Describe in words the relationships...
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Question
1.Write an overall conclusion on which of these two (2) networks giants fared better? Which company
would you rather invest in? Why?
2.Write a recommendation to the management of the other network giant which fared worse. By referring
to the ratios computed, what can you recommend so that management could improve? The proposal
should summarize the significant ratios selected and explain why you chose to highlight those ratios.
Transcribed Image Text:ABS
GMA
Ratio Analysis
2010
2009
2008
2007
2010
2009
2008
2007
Liquidity Management
Working capital
Current ratio
Quick ratio
3,885.7
2,802.1
1,585.5
2.444.9
5,786.1
6,126.0
5,030.3
4,157.9
1.36
1.33
1.19
1.38
3.70
3.60
3.23
2.52
1.35
1.31
1.16
1.35
3.65
3.55
3.19
2.49
Asset Management
AR Turnover ratio
Average collection period
Inventory Turnover ratio
Inventory conversion
period
Asset Turnover ratio
1.06
1.05
1.05
1.00
1.03
1.08
0.96
1.00
344.71
346.70
349.28
365.00
352.77
338.15
380.43
365.00
90.62
65.15
59.07
55.99
43.78
44.20
50.07
50.79
4.03
5.60
6.18
6.52
8.34
8.26
7.29
7.19
0.75
0.65
0.66
0.66
0.92
0.89
0.87
0.87
Debt Management
Times interest earned
ratio
Debt to equity ratio
Equity multiplier
4.66
3.00
3.17
4.70
975.58
423.76
373.25
143.52
1.20
1.16
1.18
0.82
0.25
0.26
0.28
0.37
2.18
2.17
2.01
1.82
1.25
1.27
1.32
1.37
Transcribed Image Text:|Profitability
Gross margin percentage
Net profit margin percenta
Return on total assets
0.47
0.42
0.41
0.45
0.59
0.61
0.60
0.60
0.12
0.08
0.07
0.07
0.23
0.24
0.22
0.23
0.12
0.08
0.07
0.09
0.29
0.28
0.27
0.28
0.09
Return on equity
Market performance
Outstanding common
0.18
0.11
0.09
0.27
0.26
0.24
0.27
779,583,312
779,583,312
779,583,312
779,583,312
3,364,692,000.00
3,364,692,000.00
3,364,692,000.00
3,364,692,000.00
share
Par value of common
share
Outstanding preferred
share
Par value of preferred
share
Preferred Dividends
1
1
1
1
1
1
1
1
7,500,000,000.00
7,500,000,000.00
7,500,000,000.00
7,500,000,000.00
0.20
0.20
0.20
0.20
870,532,881.00
869,737,829.00
731,072,620.00
752,934,496.00
Market Value per share
45
28.5 12.25
32.5
7.20
7.80
3.45
7.70
Dividend per common
0.9
0.9 0.825
0.45
0.45
0.35
0.25
0.54
share
Earnings per share
Price-earnings ratio
Dividend payout ratio
Dividend yield ratio
Book value per share
0.00
0.00
0.00
0.00
0.26
0.26
0.22
0.22
10,836,911.23
12,628,239.40
6,871,911.62
19,937,407.65
27.83
30.18
15.88
34.41
216,738.22
398,786.51
462,802.21
276,056.41
1.74
1.35
1.15
2.41
0.02
0.03
0.07
0.01
0.06
0.04
0.07
0.07
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
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