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Comparison of two major competitors in the same industry

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Instructions:

- The reason for requiring you to use Excel is that I need to see your calculations and Excel enables me to see them.

- For assigned problems that require you to find the rate of interest or the rate of growth (the rate of interest is the same thing as the rate of growth), please use the Excel RATE function for a quick and easy solution.

- All financial statements used should be shown.

- All calculations should be shown, and all answers should be thoroughly explained.

Using ratio analysis, compare two major competitors in the same industry

Using IBM and HP information (see attached) follow the same format as in the Pepsi and coca-cola example (see attached) create a single spreadsheet with appropriate entries : There are three separate financial statements to analyze: a. the income statement, b. the balance sheet, and c. the cash flow statement.

Calculate, and comment upon:
1. All relevant financial ratios for the last 2 fiscal years, including market ratios (such as PE ratios and market to book value of equity) and a full DuPont analysis.
2. Whenever you use balance sheet items to calculate ratios, for each year be sure to average the beginning-of-year and end-of-year amounts to get the average for that year.
3. What can you tell from your analysis?
4. What are the strengths and weaknesses of each company?
5. Which is the stronger competitor? Give your reasons.

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Conclusions
Both are very profitable and very solvent corporations that are conservatively financed.
Both are lower growth, mature ...

Solution Summary

This tells the steps to compare two major competitors in the same industry with the help of financial analysis

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See Also This Related BrainMass Solution

Wal-Mart and Industry Comparison with Ratio's

I am seeking 800 words on the subject below, It must include current 2011 and 2012 referrences, referrences are not included in the 800 word count.

Subject:
What is Wal-Mart's position in the industry including a comparison of the company to its competitors. Good metrics to determine a company's position in the industry and its comparison to competitors include revenues and/or market share.

Also Include Industry Comparison for Walmart Industry Comparsion and Industry Averages.
This is what this portion should address, the format Is provided below. Current 2011 and 2012 referrences must be included
Industry Comparison
Ratio Wal-Mart Industry Averages
1. Net income growth
2. P/E Ratio
3. Net Income
4. Current Ratio
5. Interest Coverage
6. Return on Assets
7. Total assets Turnover

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