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