Answer To: 3.6 Paper1. Construct an evaluation of the company’s financial strengths and weaknesses, based on...
Prince answered on Mar 22 2023
Ratio Analysis of Phillips Healthcare
Student Name
22nd March 2023
Philips Healthcare is a leading healthcare technology company that focuses on improving people’s lives through meaningful innovation. The company is a leader in the medical device and healthcare IT markets, delivering solutions to healthcare providers, and patients. Financial ratios are a gauge of the overall financial health of an organization. Utilized to assess and evaluate the liquidity, solvency, efficiency and profitability of a firm, these ratios offer key financial insights. In the following analysis, we will compare the financial ratios of Philips Healthcare with two of its main competitors, LG and GE.
Following table of ratios creates a comprehensive comparison of Philips Healthcare, LG, and GE along key metrics:
Ratio
Philips Healthcare
LG
GE
2022
2021
2020
2022
2022
Current Ratio
1.29
1.39
1.45
0.94
1.16
Long-term Debt / Capital
0.35
0.31
0.32
0.37
0.43
Debt/Equity Ratio
0.62
0.48
0.58
0.86
0.86
Gross Margin
40.35
41.78
44.95
17.76
27.45
EBITDA Margin
8.03
11.02
16.41
22.53
11.71
Net Profit Margin
- 9.02
19.35
6.08
4.46
- 0.08
ROE - Return On Equity
- 12.18
4.23
10.12
...