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3.6 Paper 1. Construct an evaluation of the company’s financial strengths and weaknesses, based on a ratio analysis of at least the last three years’ financial statements for Philips Healthcare.  a....

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3.6 Pape
1. Construct an evaluation of the company’s financial strengths and weaknesses, based on a ratio analysis of at least the last three years’ financial statements for Philips Healthcare. 
a. Consider key financial ratios for the company you have selected. Include a small table in your paper listing at least 10 key financial ratios for the company.
. These ratios are readily available from internet sources for all large public corporations. Refer to Chapter 3 of your textbook as necessary to refresh your memory on financial ratios.
c. Compare and contrast the key ratios you selected to at least two of the company’s main competitors. Show the ratios of these competitors side-by-side to the company you are researching in the table of ratios you have created.
d. Identify areas of financial strength and weakness based on your analysis.
2. You should consult at least the latest three full years of the company’s financial reports in order to prepare your analysis. These financial reports should be attached as an appendix to the completed paper.
ws3-paper-e0gdwcf1.docx
Answered 2 days After Mar 20, 2023

Solution

Prince answered on Mar 22 2023
27 Votes
Ratio Analysis of Phillips Healthcare
Student Name
22nd March 2023
Philips Healthcare is a leading healthcare technology company that focuses on improving people’s lives through meaningful innovation. The company is a leader in the medical device and healthcare IT markets, delivering solutions to healthcare providers, and patients. Financial ratios are a gauge of the overall financial health of an organization. Utilized to assess and evaluate the liquidity, solvency, efficiency and profitability of a firm, these ratios offer key financial insights. In the following analysis, we will compare the financial ratios of Philips Healthcare with two of its main competitors, LG and GE.
Following table of ratios creates a comprehensive comparison of Philips Healthcare, LG, and GE along key metrics:
    Ratio
    Philips Healthcare
    LG
    GE
    
    2022
    2021
    2020
    2022
    2022
    Cu
ent Ratio
     1.29
     1.39
     1.45
     0.94
     1.16
    Long-term Debt / Capital
     0.35
     0.31
     0.32
     0.37
     0.43
    Debt/Equity Ratio
     0.62
     0.48
     0.58
     0.86
     0.86
    Gross Margin
     40.35
     41.78
     44.95
     17.76
     27.45
    EBITDA Margin
     8.03
     11.02
     16.41
     22.53
     11.71
    Net Profit Margin
    - 9.02
     19.35
     6.08
     4.46
    - 0.08
    ROE - Return On Equity
    - 12.18
     4.23
     10.12
     ...
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