Performance Management and Valuation
A.Complete the Assignment 2 Worksheet to compare key performance metrics and ratios for both
companies in order to see how performance can be impacted by manipulating certain financial
levers.
B. Summarize your Analysis and Recommendations by answering the following questions:
i. Performance Metrics:
a. Which company is a more efficient generator of income?
b. Which company is growing faster?
c. Using financial health ratios, which company is more profitable?
d. Which company has stronger valuation ratios?
e. Overall, which is the better run company and why?
ii. Merger Synergies:
a. If there was an acquisition, which company is the most likely acquirer? Why?
b. Would you recommend a merger or acquisition to increase the moat strength of the
combined companies? Why or why not?
Leave the parts on the worksheet that specify pg numbers blank. I've also added past essay for reference