Assignment
A.
- Two different stock exchanges in the United States
- Similarities and differences between the two stock exchanges
- One stock from each of the two stock exchanges
The NASDAQ and the NYSE are the stock exchanges in the United States. NYSE has a larger market capitalization than the NASDAQ and it covers mostly technology stocks while the NYSE covers well established and more stable stocks.
On the other hand, NASDAQ is fully automated compared to NYSE which still uses people to monitor the stock and carry out electronic trading. Overall it is cheaper for companies to list on the NASDAQ stock exchange.
The NASDAQ is a dealer's market while the NYSE is an auction market. An example of a company listed in NASDAQ is Google while a company listed in the NYSE is Walmart.
B.
- Determine the free cash flow from 2013 & 2014
- What inference can be drawn from the companies' free cash flow
Company 2013 2014
Google 11.3 Billion 12.01 Billion
Walmart9.83 Billion10.14 Billion
In this case, both companies are doing very well in the market. They have very large free cash flows.
C.
- Financial ratios for: liquidity, asset management, and profitability ratios.
- Challenges, Strengths and Weaknesses
|
|
Google
|
Walmart
|
|
Financial ratios
|
2013
|
2014
|
2013
|
2014
|
|
Current ratio
|
4.58
|
4.80
|
0.83
|
0.88
|
|
Asset turnover
|
0.58
|
0.55
|
2.37
|
2.34
|
|
Net margins
|
21.6
|
21.88
|
3.62
|
3.36
|
It is very clear that Google has more liquidity than Walmart. Walmart has a lot of capital in its assets.
Walmart generates more revenues from its assets than Google. Walmart's business model is setup to create this type of environment.
Google has low assets and high human workforce. Overall Google is much more profitable than Walmart.
Attachment:- Financial Data.rar