The maximum critical economic declaration for most people of users is likely to be the profits assertion, The financial statements of two corporations competing within an identical enterprise.
Profit Margin Ratio = Net Income / Net Sales
Barco Company = $149,492 / $760,000 = 0.196
Kyan Company = $233,738 / $904,200 = 0.258
Total Asset Turnover = Net Sales / Average Total Asset
Barco Company = 760,000 / ((428,000 + 481,140)/ 2) = 1.67
Kyan Company = 904,200 / ((402,500 + 543,350)/ 2) = 1.91
Return on Total Asset = EBIT / Average Total Asset
Barco Company = 171,900 / ((428,000 + 481,140)/ 2) = 0.38
Kyan Company = 271,700 / ((402,500 + 543,350)/ 2) = 0.57
Return on Common Share = Net Income / Average common shareholder's Equity.
Barco Company = 149,492 / (( 170,000 + 170,000) / 2) = 0.88
Kyan Company = 233,738 / ((196,000 + 196,000) /2) = 1.19
Price Earning Ratio = Price Per Share / Earning Per Share
Barco Company = 80 / 4.40 = 18.18
Kyan Company = 80 / 5.96 = 13.42
Dividend Yield Ratio = Annual Dividend / Price Per Share
Barco Company = 3.80 / 80 = 0.047
Kyan Company = 3.96 / 80 = 0.049.
Kyan Company Stocks are better for investment as it has an ideal price Earning Ratio, which means it is not overpriced, a better Dividend Yield Ratio as compared to Barco company and by looking at the other Ratios, we can see it has better fundamentals than the latter one.
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