Locate or calculate at least 5 key ratios from your company’s main competitors. Compare your company to the competition and explain which company is performing better.

1. Revenue Growth: Many companies measure their revenue growth by comparing the total sales from one period to the next. For example, if a company has $200 million in sales during Q2 2021, and had $180 million in Q2 2020, then its revenue growth rate would be 11%.

Company A: 10%
Company B: 15%
Conclusion: Company B is performing better as it has higher revenue growth compared to Company A.

2. Profit Margin: This ratio measures how much of each dollar earned turns into net income for the company. It’s calculated by dividing net income by total sales revenues for a given period of time (e.g., quarterly or annually).

Company A: 4%
Company B: 7%
Conclusion: Company B is performing better as it has higher profit margin compared to Company A.

3. Return on Assets (ROA): ROA calculates how efficient a company is at using its assets to generate profits, and can be calculated by dividing net income by total assets for a given time period (e.g., quarterly or annually).

Company A: 8%
Company B: 12%
Conclusion: Company B is performing better as it has higher return on assets compared to Company A.

4. Debt-to-Equity Ratio (D/E): The D/E ratio indicates how well a company uses debt financing versus equity financing — i.e., whether investors are more likely to lend money or invest in the business itself rather than selling stock shares directly to consumers and other businesses alike — as well as examining financial health and stability over time periods such as quarters or years..

Company A 0.50
Company B 0.45 Conclusion: Company B is performing better since they have lower debt-to equity ratio compared to Company A which means they use less leverage when financing their operations .

5 Earnings Per Share (EPS): EPS measures the earnings generated per share of stock outstanding during any given period of time – usually yearly or quarterly – and can be used both within an industry and across industries for comparison purposes..

Company A 3$
Bonus – Market Capitalization : Market capitalization captures the size of your organization relative to that of competitors based on current market prices..                                                                                                                           CompanyA : 25B
CompanyB : 50B
Conclusion :company b performs better since it has larger market cap than companya