Explain what each calculation tells you about the firm. Are they a good investment? Compare the two companies and explain which is the better investment and why. What other types of ratios would be helpful in this analysis? Explain.

Select two of the four companies shown below. Use the SEC Edgar website for your research.

Companies:

• Ford
• General Motors
• Pepsi
• Coca-Cola

1. Compare the firms’ profits for the past two years.
2. Compute the working capital for each firm.
3. Determine the price-earnings (P/E) ratio.
4. Calculate the debt-to-equity ratio.

Explain what each calculation tells you about the firm. Are they a good investment? Compare the two companies and explain which is the better investment and why. What other types of ratios would be helpful in this analysis? Explain.

Embed course material concepts, principles, and theories, which require supporting citations along with three scholarly peer-reviewed references supporting your answer. Keep in mind that these scholarly references can be found in the Saudi Digital Library by conducting an advanced search specific to scholarly references.

Be sure to support your statements with logic and argument, citing all sources referenced. Post your initial response early and check back often to continue the discussion. Be sure to respond to your peers’ posts as well.