Provide 1 response to each student post. Each response should be 150 words each.
Managerial Finance
Please pay close attention to plagiarism, and it's not tolerated.
Provide 1 response to each student post. Each response should be 150 words each. Turnitin and Waypoint is being used to check for plagiarism and Please use APA format. Please pay close attention to plagiarism, and it's not tolerated
Yesterday Aug 6 at 12:44pm
On the company page that you selected click on the “Analysis” tab. After doing so, scroll down the page until you see the Financial ratios for the company and the industry.
There are several categories listed for ratios. Select one “Financial Condition Ratio” and one “Management Efficiency Ratio”.
Ford Motor Company (NYSE: F)
Financial condition
Debt/Equity Ratio 2.86 (Company) 1.03 (Industry)
Management Efficiency
Inventory Turnover 12.28 (Company) 6.87 (Industry)
Also on the company page, on the same ribbon that you found the “Analysis” tab you will find the “Related” tab. Click on it and select a competitive company within that industry and compare those ratios to the ones you just found.
General Motors (NYSE: GM)
Debt/Equity Ratio 1.71 (Company) 1.03 (Industry)
Management Efficiency
Inventory Turnover 12.98 (Company) 6.87 (Industry)
Examine your findings and determine whether your company outperforms its competition based on financial ratios. Identify where your firm seems to lag. Describe how your firm compares with the industry and speculate as to why you believe your firm is performing as it is.
A debt to income ratio informs us of an organization’s debt relative to its assets. As we can see Ford has a higher ratio than that of its competitor GM. That would mean that we would want to take a closer look at Ford as their ratio is showing a lot more risk than that of GM. In theory we can see that both companies are higher than the industry average of 1.03, therefore as a lender I would have heavy doubts about Ford if they wanted to borrow money.
Inventory turnover is important as well as the inventory method that is being used as it will have an impact on the ratio derived. Per Byrd, Hickman, and McPherson inventory turnover ratio measures how fast inventory is sold by firms. Since these are vehicle manufacturers I am not expecting them to turn over inventory like a t-shirt or sunglass company. On the other hand I do not feel that over 12 and almost 13 is the best turnover.
Byrd, J., Hickman, K., & McPherson, M. (2013). Managerial Finance [Electronic version]. Retrieved from
https://content.ashford.edu/Yesterday Aug 6 at 11:50pm
Go to
MSN Money
. (
http://investing.money.msn.com/investments/key-ratios(Links to an external site.)
) and type in a ticker symbol for a company with the first letter of your last name.
Next, complete the following:
On the company page that you selected click on the “Analysis” tab. After doing so, scroll down the page until you see the Financial ratios for the company and the industry.
There are several categories listed for ratios. Select one “Financial Condition Ratio” and one “Management Efficiency Ratio”.
Also on the company page, on the same ribbon that you found the “Analysis” tab you will find the “Related” tab. Click on it and select a competitive company within that industry and compare those ratios to the ones you just found.
Examine your findings and determine whether your company outperforms its competition based on financial ratios. Identify where your firm seems to lag. Describe how your firm compares with the industry and speculate as to why you believe your firm is performing as it is.
The company that I have is RYDER SYSTEM, INC (R) which offers supply chain and transportation solutions. They are a rental truck company that can help anyone move across town or the country. The financial ratio that was selected is debt/equity ratio and for the management efficiency ratio is return on equity %. There is a competitive company that everyone has seen on the road and that is of J.B. Hunt Transport Services (JBHT).
Company
|
Debt/Equity Ratio
|
Return on Equity (%)
|
Ryder System, Inc.
|
2.54
|
11.06
|
J.B. Hunt
|
0.64
|
23.50
|
My company that I selected is not outperforming competition just looking at a quick snapshot and comparing the two sections for comparison. Even though their revenue increased 14% their income fell 65%. J.B. Hunt grew their revenue 19% but income fell 28%. The firm is lagging on their return on equity (%) and their inventory as it is double of the industry standard. Ryder is performing at below of the industry as there are other companies who are outpacing in growth and revenue compared to Ryder. I think they are lagging due to their slow sales for trucks and rentals but they are still having a profit.
Byrd, J., Hickman, K., & McPherson, M. (2013). Managerial Finance [Electronic version]. Retrieved from
https://content.ashford.edu/(Links to an external site.)
FreightWaves. (2019, July 30). Ryder System, Inc. (NYSE:R) - Ryder Posts Record Sales And Earnings Across All Segments. Retrieved from
https://www.benzinga.com/news/earnings/19/07/14163199/ryder-posts-record-sales-and-earnings-across-all-segments?mod=mw_quote_news