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Financial Ratios for Sirius and XM Satellite Radio

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IPrepare a summary comparing Sirius Satellite Radio and XM Satellite Radio's recent fiscal years statements based on the profitability ratios & efficiency levels.

Discuss profitability ratios: choose 2 ratios within this category to discuss and relate to our company of choice.

Discuss management efficiency ratios: choose 2 ratios within this category to discuss and relate to our company of choice

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Solution Summary

This solution helps compare recent financial ratios for Sirius Satellite Radio and XM Satellite Radio.

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Ratio analysis for Sirius Satellite Radio and XM Satellite Radio:
Profitability ratio: Profitability is ratio is defined as a group of ratios that shows the combined effects of liquidity, asset management and debt on the operating results of the company. Following are the two profitability ratios:

Profit margin on sales: Profit margin on sales is a profitability ratio that measures the net income per dollar of sales of the company.
Profit margin on sales=(Net Income)/Sales
For Sirius Satellite Radio:
Profit margin on sales (2009)=(-$342,780,000)/$2,472,638,000=-13.86%
For XM Satellite Radio:
Profit margin on sales (2009)=(-$41,483,382)/$52,452,894=-79.1%
Here we can see that XM Satellite radio has a huge loss of 79.1% of its sales this indicates that XM Satellite radio is going ...

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