Problem:
|
Industrial Company #1
|
|
(in millions)
|
2008
|
2009
|
2010
|
|
Sales
|
$4,250
|
$4,500
|
$4,750
|
|
Operating Income
|
$400
|
$445
|
$480
|
|
Net Income
|
$200
|
$225
|
$250
|
|
|
|
|
|
|
Current Assets
|
$2,500
|
$2,750
|
$2,850
|
|
Current Liabilities
|
$2,300
|
$2,450
|
$2,500
|
|
|
|
|
|
|
Shares Outstanding
|
100
|
100
|
100
|
|
Average Stock Price
|
$32
|
$39
|
$50
|
|
Industrial Company #2
|
|
(in millions)
|
2008
|
2009
|
2010
|
|
Sales
|
$3,350
|
$3,750
|
$4,250
|
|
Operating Income
|
$335
|
$395
|
$470
|
|
Net Income
|
$168
|
$198
|
$240
|
|
|
|
|
|
|
Current Assets
|
$1,750
|
$1,900
|
$2,100
|
|
Current Liabilities
|
$1,350
|
$1,400
|
$1,500
|
|
|
|
|
|
|
Shares Outstanding
|
80
|
80
|
80
|
|
Av Stock Price
|
$38
|
$46
|
$62
|
|
2010 Industry Avg.
|
|
Operating Margin
|
10.50%
|
|
Net Margin
|
5.50%
|
|
Current Ratio
|
1.25
|
|
Earnings/Share
|
$2.75
|
|
PE Ratio
|
20.0
|
I want calculations of the following values for both Industrial Company #1 and Industrial Company #2 using the information from the data tables located above for:
o Operating income margin
o Net income margin
o Current ratio
o Earnings per share
o Price-to-earnings (P/E) ratio.
o Compare the company calculation values to the industry averages.
o Compare calculations for both Industrial Company #1 and Industrial Company #2