Websites that can be used: https://marketatlas.mergent.com/
Using the same company and annual reports that you chose in your Week 1 discussion forum, Reading and Using the Annual Report Case Study, address the following: PEARSON PLC
Calculate the gross profit ratio, operating margin ratio, and net income margin ratio for the latest two years and obtain the industry averages for these ratios and any other pertinent information from the Merchant market analysis, and then analyze the results. Be sure to show your calculations.
- Analyze these ratios and discuss what each of these ratios tells you about the company’s profitability and how it compares to the industry averages.
- Note any trends in these ratios from year-to-year and discuss your assessment of the company based on these changes.
- As an investor, explain why you would or would not buy stock in the company.
Your initial response should be a minimum of 200 words. 1 credible or scholarly resource. APA format.
2. You may consider using the same company and annual reports that you chose in your Week 1 discussion forum, Reading and Using the Annual Report Case Study. This choice will only work if the company generates the bulk of its revenue from the sale of goods and maintains inventory. If not, then you will need to select another company for this analysis. Choose a company that a fellow student has not already posted.
Address the following:
- Calculate the inventory turnover ratio and number of days’ sales in inventory for the company for the latest two years. Obtain the industry averages for these ratios and any other pertinent information, and then analyze the results. Be sure to show your calculations
- Discuss what each of these ratios tells you about the company’s efficiency in managing its inventory and how they compare to the industry average.
- Identify the major causes of any changes in these ratios and discuss your assessment of the company based on these changes.
- As an investor, explain whether or not you are satisfied with the company’s inventory management.
Your initial response should be a minimum of 200 word 1 credible or scholarly resource