1. Show and compute the following (don’t use Key Ratios precomputed from the site). Compute the ratios using the methods described in this class (which may not always give you the same number as shown in Key Ratios). Note that sales = Total Revenue, and Shares outstanding is reported at the end of the Balance Sheet as “Ordinary Shares Outstanding”
a. Current Assets
b. Current Liabilities
c. Working Capital
d. Book Value per Share
e. Profit Margin on Sales
f. Quick Ratio
g. Gross Margin
h. Inventory Turnover Ratio
i. Debt Ratio
j. ROE
k. Given Today’s price (make sure to show what it is the day you record it), what would the PE ratio be if Earnings from Q1 2015 were used.
2. Caterpillar for Q1 2015
a. What is CAT’s Gross Margin?
b. Profit Margin
c. Quick Ratio
d. Inventory Turnover Ratio
e. Debt Ratio
f. ROE
g. PE Ratio (based on sales price today and revenues from Q1 2015.
3. Based on the data collected in parts 1 and 2, state which stock you would prefer to purchase today (based entirely on these financial metric comparisons)