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Two Company Comparison

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FINAL COURSE PROJECT summary Tsosie PROJECT WEEK 4 Tsosie

I. Bombardier’s business Objectives are stated as “becoming the number one manufacturer in the world.” – Guy Hachey. Lofty goals but from the examination of the current data, Bombardier may be close to achieving this objective. a. The Current Ratio is 2. b. The Debt Ratio is 45.38. c. The Return on Investment is 10.06%
The statements show an increase in net revenue from $707 to $769 in a time when the global economy is experiencing a down turn.
Dassault’s business Objectives are stated as expansion through acquisition. “At the top line, total revenue of EUR410 million increased 29% in constant currencies. New licenses revenue was up 28% in constant currencies. The revenue dynamic was good in all three geographic regions. At the bottom-line earnings were up 47% demonstrating our operating leverage.” – Bernard Charles

II. The Three Most Important Ratios for my companies are: d. The Current Ratio e. The Debt Ratio f. The Return on Investment

III. Relevant Ratios and Comparison to Industry show. Ratio | Bombardier | Dassault | Industry | Analysis | The Current Ratio | 2 | 4.5 | 1 | Both of the companies being considered are above the industry average when it comes to current ratio. Bombardier is lower because of their aggressive expansion into alternative product lines. Regardless both companies have sufficient reserves to meet their current obligations. | The Debt Ratio | 45.38 | 70.20 | 48.5 | Bombardier is in line with the industry average. Dassault is almost twice the industry average but their expansion philosophy is to maximize leverage so it is not unexpected. | The Return on Investment | 10.06 | 16.41 | 6.7 | Both companies far

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