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

Compare the firms’ profits for the past two years.

Compute the working capital for each firm.

Determine the price-earnings (P/E) ratio.

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.