I have an assignment for my managerial accounting class. Need to


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I have an assignment for my managerial accounting class. Need to compare ratios between two companies and analyze which company is more profitable and solvent. Attached i am adding some ratios for your guidance for each company for the past 3 years. Need help creating a summary to explain the ratios for each company and determine which company is more solvent and which company is more profitable. Feel free to add other ratios if needed. QUOTE Compute the SOLVENCY ratios, comparing the two companies and render an opinion on which company is more solvent. Compute the ratios for multiple years to determine if there is a significant trend. Compute the PERFORMANCE ratios, comparing the two companies and render an opinion on which company is performing better. Compute the ratios for multiple years to determine if there is a significant trend. UNQUOTE solvency and performance analysis.xlsx inventory turnover hersheys nestle 2013 5.98 5.5 2014 5.59 5.42 2015 5.16 5.05 Asset Turnover hersheys nestle 2013 1.41 0.75 6 1.6 5.98 5.6 0.75 0.8 5.16 5.05 5 current ratio hersheys 2013 nestle 2013 2014 1.77 1.16 2014 0.91 nestle1.03 hersheys Quick ratio hersheys nestle 0.6 2013 1.13 0.59 2014 0.55 0.69 0.2 2015 0.832015 0.85 0 2013 2014 hersheys 2015 0.43 0.52 Book Value per share hersheys nestle 25 1.13 1 0.69 0.59 0.6 0.55 0.52 0.43 2015 4.1 19.89 19.89 18.78 10 6.98 4.1 5 0 2013 2014 Debt to Equity hersheys nestle 0 2015 hersheys 2013 2014 hersheys nestle 2013 1.12 0.17 2014 1.06 0.18 2015 1.56 0.18 Payout ratio hersheys nestle 1.8 nestle 2014 54.1 71.8 2015 96.7 47.4 Payout Ratio 120 1.56 1.6 2015 2013 50.6 60 Debt to Equity Ratio 96.7 100 1.4 1.12 80 1.06 1 71.8 60 0.8 0.6 60 50.6 54.1 47.4 40 0.4 0.18 0.17 0.2 0 2013 0.18 2014 hersheys Financial Leverage hersheys nestle 2015 20 0 2013 2014 nestle 2013 3.34 1.92 2014 3.87 1.9 hersheys 2015 5.36 1.98 Earnings per share hersheys nestle Financial Leverage Ratio 6 2015 nestle 2013 3.61 3.13 2014 3.77 4.52 2015 2.33 4.51 Earnings per Share Ratio 5 5.36 4.52 4.5 5 4 3.87 3.5 3.34 4.51 3.77 3.61 3.13 3 3 2.33 2.5 1.92 1.98 1.9 2 1.5 1 1 0 2014 6.98 18.78 21.89 5.98 0.2 2 2013 5.98 21.89 15 0.4 4 nestle 20 0.8 2015 Book Value per Share Ratio Quick Ratio 1.2 0.76 0.72 0.4 4.8 1.2 1.35 1 5.42 5.2 4.4 1.35 1.2 5.59 5.5 5.4 4.6 1.41 1.4 5.8 2015 1.35 0.76 Asset Turnover Ratio Inventory Turnover Ratio 6.2 2014 1.35 0.72 0.5 2013 2014 hersheys Net margin % hersheys nestle 2013 11.48 10.84 2015 0 2013 nestle 2014 11.41 15.74 2014 hersheys 2015 6.94 15.63 Gross Margin hersheys nestle 2013 45.91 47.92 2015 nestle 2014 44.95 48.24 2015 45.79 48.97 Gross Margin Ratio Net Margin % Ratio 50 18 15.74 16 15.63 14 12 11.48 10.84 11.41 47 45.91 46 8 6.94 45.79 44.95 45 6 44 4 43 2 2013 2014 hersheys operating Margin hersheys nestle 2015 42 2013 2014 hersheys nestle 2013 18.75 14.15 2014 18.72 11.87 2015 14.05 11.76 EBT Margin hersheys nestle Operating Margin Ratio 20 48.24 47.92 48 10 0 48.97 49 18.75 2015 nestle 2013 17.51 13.46 2014 17.6 11.18 EBT Margin Ratio 18.72 25 18 16 14 2015 21.21 11.07 21.21 14.15 14.05 11.87 12 20 11.76 15 17.6 17.51 13.46 10 11.18 8 11.07 10 6 4 5 2 0 2013 2014 http://financials.morningstar.com/ratios/r.html?t=NSRGY hersheys nestle http://financials.morningstar.com/ratios/r.html?t=HSY 2015 0 2013 2014 hersheys 2015 nestle Read more

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