Comment on the 5-Year Trends in the Following Profitability Ratios

Chapter 8

1. Enter BA in entity lookup (Boeing Company). Click “GO.” Review the business description, industry, and sector. Click “Financials.” Click “Fundamental Ratios.” Click “SEC Database Ratios,” then click “Annual Ratios.”

Required

Comment on the 5-year trends in the following profitability ratios.

1. Net income/net sales.

2. Net income/total assets.

3. Net income/common equity.

4. Net income/invested capital.

5. Sales/plant and equipment.

6. Sales/total assets.

2. In this part, comparisons are made between Anheuser-Busch (BUD) and Adolph Coors (RKY). Follow the same directions as used in part 1 for the Boeing Company.

Required
a. For Anheuser-Busch, comment on the 5-year trends in the profitability ratios.

b. For Adolph Coors, comment on the 5-year trends in the profitability ratios.

c. Compare the Anheuser-Busch profitability ratios with the Adolph Coors profitability ratios.

3. In this part, comparisons are made between Gateway Computer (GTW), Apple Computer (AAPL), Dell Computer (DELL), and Hewlett-Packard (HPQ). Follow the same directions as used in part 1 for the Boeing Company.

Required

a. For Gateway Computer, comment on the 5-year trends in the profitability ratios.

b. For Apple Computer, comment on the 5-year trends in the profitability ratios.

c. For Dell Computer, comment on the 5-year trends in the profitability ratios.

d. For Hewlett-Packard, comment on the 5-year trends in the profitability ratios.

e. Compare the profitability ratios for these four firms.