Financial statement analysis by ratio analysis of given data.
You are given the following data on two companies, M and N (figures are millions):
|
|
M
|
N
|
|
Sales
|
$1,080
|
$1,215
|
|
Net Income
|
54
|
122
|
|
Investment
|
180
|
405
|
a) Which company has the higher profit margin?
b) Which company has the higher investment turnover?
c) Based solely on the data given, in which firm would you prefer to invest?