Finance

In the four listed companies, Walt Disney has the lowest current ratio, 0.99. The other three companies’ current rations are all more than 1, which means they have enough current assets to pay for their current liabilities. In terms of total asset turnover, Parker Hannifin is the highest. Followed by Boeing and IBM, each has about 92%. The least is Walt Disney.

Among the four companies, IBM has the highest times interest earned ratio, which reaches 52.10 times. Walt Disney ranks the second, 26.09 times. Parker Hannifin and Boeing’s ratio is 17.99 times and 13.76 times, respectively. In terms of debt-to-equity ratio, IMB is the highest, and Boeing has a slightly smaller ratio. Parker Hannifin is the lowest.

In the four companies, IBM has the highest return on sales and return on assets, while Boeing has the lowest ratios. In terms of return on equity, IBM and Boeing are much higher Parker Hannifin and Walt Disney. The difference in P/E ratio of the each company is very small. Walt Disney is the highest, and IBM and Parker Hannifin are the lowest.

After comparing the ratios of the four companies, I would rank the firms as following, IBM, Boeing, Parker Hannifin and Walt Disney.

One reason for their different financial performance is that the four companies are in different industries and each industry may have its own typical development cycle. If the companies are in the different development phrase, then their financial performance will be different. Another reason for the different performance could be the different efficiency of each company’s management. If the top managers in one company are skillful and responsible, their company will perform better than other companies.

Some factors might account for big differences in P/E ratios include demand, policies and firms’ performance. If the demand for a firm’s products or service is constant and strong, people will have more confidence in the firm. Therefore, the market price for its shares will...