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Financial Ratio Comparrison: Computronix and Digitek

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You have the following information taken from the 1996 financial statements of Computronics Corporation and Digitek Corporation (all figures are in $ millions except per share amounts):
Computronix Digitek

Net income 153.7 239.0
Dividend payout ration 40.0% 20.0%
EBIT 317.6 403.1
Interest expense 54.7 4.8
Average assets 2,457.9 3,459.7
Sales 3,379.3 4,537.0
Average shareholders' equity 1,113.3 2,347.3
Market price of the common stock:
At beginning of year $15.0 $38.0
At end of year $12.0 $40.0
Shares of common stock outstanding 200.0 million 100.0 million

Compare and contrast the financial performance of the two companies using financial ratios.

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Solution Summary

Compare and contrast the financial performance of the two companies using financial ratios

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You have the following information taken from the 1996 financial statements of Computronics Corporation and Digitek Corporation (all figures are in $ millions except per share amounts):
Computronix Digitek

Net income 153.7 239.0
Dividend payout ration 40.0% 20.0%
EBIT 317.6 403.1
Interest expense 54.7 4.8
Average assets 2,457.9 3,459.7
Sales 3,379.3 4,537.0
Average ...

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