Financial Ratio Analysis

Although  Financial Ratio Analysis has limitations, it is a great tool to find the problematic areas in the company so that managers can go back and address the problems. One of the limitations is the differences in accounting standards around the world that can distort financial ratios. Select two publicly traded US companies listed on the NASDAQ stock market and calculate each company’s P/E (Price to Earnings Ratio) and MB (Market to  Book Ratio). What do these ratios tell you about how investors value these two companies’ future prospects?

Search  in the Internet for an academic or industry-related article. Select an  article that relates to these concepts and explain how it relates to  doing business in Saudi Arabia. For  your discussion post, your first step is to summarize the article in  two paragraphs, describing what you think are the most important points  made by the authors (remember to use citations where  appropriate). For the second step, include the reference listing with a  hyperlink to the article. Do not copy the article into your post and  limit your summary to two paragraphs







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