Market Ratios Provide brief definition of what Market ratios mean to the profitability of a company. What are the differences between Apple and Samsung in relationship to the ratios? See attached for ratios What does it mean to the company’s profitability? Is it good or bad
Market Ratios
- Provide brief definition of what Market ratios mean to the profitability of a company.
- What are the differences between Apple and Samsung in relationship to the ratios?
- See attached for ratios
- What does it mean to the company’s profitability? Is it good or bad?
1.Market ratios- These are used to evaluate whether the shares of a public company are underpriced or overpriced or at par with the market. These ratios help investors in making investment decisions regarding shares of a company.
2.Apple vs Samsung market ratio analysis-
EPS- Earning per share gives the dollar values per outstanding equity share for a company. For this, all payments for debenture holders and preferred stockholders need to be adjusted from the income of the company.
Now coming to the Apple vs Samsung comparison, Apple incorporation has a higher eps of 2.97 as compared to 2.70 of Samsung in the year 2019. This, in turn, shows Apple was able to generate more wealth for the shareholder than Samsung and thus has better investment prospects.
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