Course: FIN201

Section: 05

Semester: Autumn 2020

Group member:

Name ID
Md. Ashikul Islam 1811337
Farjana Rahman 1711205
Tasmia Rahman Mim 1811009
Rabaya Bashri Rinkey 1620388
Nazim Uddin 1721832

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Letter of transmittal:

To:

Jesmin mannan,

Faculty, FIN 201

Independent University, Bangladesh

Bashundhara R/A, Dhaka

Date: 30 December 2020

Subject: Submission of report

Dear Mrs. Jesmin, Please allow us to express our gratitude towards you for providing us with
the opportunity of presenting our report on analysis of VF corporation, Peloton Interactive INC.,
Aptiv PLC, Ebay INC and ETSY INC. This report reflects thoroughly on our focus on the topic
regarding this matter. All the relevant information regarding the report we have done there have
been included and it is expected that our report will help you get a clear view about our work .
We tried our level best for preparing this report meaningfully and correctly, as much as possible
and it will be our sheer pleasure to explain any query or clarification in order for you to learn in
depth of our report.

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 Table of content

1. Acknowledgement………………………….4

2. Different types of ratios and definition……5

3. Company ratio analysis……………………..8

4. VF Corporation……………………………..9

5. Peloton Interactive INC…………………….11

6. Aptive PLC………………………………….13

7. Ebay INC……………………………………15

8. ETSY INC…………………………………..17

9. Comparison between 5 companies………..19

10.Question and answers………………………24

11.Reference…………………………………...25

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Acknowledgement:

We have taken efforts in this assignment. However, the completion of this assignment would not
have been possible without the kind support and help of our respected faculty who deserves our
deepest appreciation. We would like to express our utmost gratitude to Mrs. Jesmin Mannan for
giving us the opportunity to do this report and we would like to thank you for your contribution
in stimulating numerous suggestions and encouragement, which helped us to coordinate this
assignment and most importantly for being the most supportive mentor one could ask for. Our
thanks and appreciations also go to those who have helped us with the abilities in developing the
assignment. Furthermore, without the time, effort and cooperation of our team members, it
would not have been possible for us to successfully complete this report.

Thank you.

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Chapter 1 : Different types of ratios and their meaning:

1. Profitability ratio: Profitability ratios are a class of financial metrics that are used to assess a
business's ability to generate earnings relative to its revenue, operating costs, balance sheet assets,
or shareholders' equity over time, using data from a specific point in time.
There are 3 types of profitability ratios and these are:
 Return on asset : Return on assets (ROA) is an indicator of how profitable a company is
relative to its total assets. ROA gives a manager, investor, or analyst an idea as to how
efficient a company's management is at using its assets to generate earnings. Return on
assets is displayed as a percentage.
 Profit margin : Profit margin is one of the commonly used profitability ratios to gauge the
degree to which a company or a business activity makes money. It represents what
percentage of sales has turned into profits. Simply put, the percentage figure indicates
how many cents of profit the business has generated for each dollar of sale. There are
several types of profit margin. In everyday use, however, it usually refers to net profit
margin, a company’s bottom line after all other expenses, including taxes and one-off
oddities, have been taken out of revenue.
 Return on equity : Return on equity (ROE) is a measure of financial performance
calculated by dividing net income by shareholders' equity. Because shareholders' equity
is equal to a company’s assets minus its debt, ROE is considered the return on net assets.
ROE is considered a measure of the profitability of a corporation in relation to
stockholders’ equity.

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 2. Asset utilization ratio: The asset turnover ratio measures the value of a company's sales
or revenues relative to the value of its assets. The asset turnover ratio can be used as an indicator
of the efficiency with which a company is using its assets to generate revenue. The higher the
asset turnover ratio, the more efficient a company is at generating revenue from its assets.
Conversely, if a company has a low asset turnover ratio, it indicates it is not efficiently using its
assets to generate sales.

There are 5 parts of asset utilization ratios and these are:

 Receivable turnover: The receivables turnover ratio is an accounting measure used to quantify a
company's effectiveness in collecting its receivables or money owed by clients. The ratio shows
how well a company uses and manages the credit it extends to customers and how quickly that
short-term debt is collected or is paid. The receivables turnover ratio is also called the accounts
receivable turnover ratio.

 Average collection period: The average collection period is the amount of time it takes for a
business to receive payments owed by its clients in terms of accounts receivable (AR).
Companies calculate the average collection period to make sure they have enough cash on hand
to meet their financial obligations. The average collection period is calculated by dividing the
average balance of accounts receivable by total net credit sales for the period and multiplying the
quotient by the number of days in the period. Average collection periods are most important for
companies that rely heavily on receivables for their cash flows.

 Inventory turnover : Inventory turnover is a ratio showing how many times a company has sold
and replaced inventory during a given period. A company can then divide the days in the period
by the inventory turnover formula to calculate the days it takes to sell the inventory on hand.
Calculating inventory turnover can help businesses make better decisions on pricing,
manufacturing, marketing and purchasing new inventory.

 Fixed asset turnover: The fixed asset turnover ratio (FAT) is, in general, used by analysts to
measure operating performance. This efficiency ratio compares net sales (income statement) to
fixed assets (balance sheet) and measures a company's ability to generate net sales from its fixed-
asset investments, namely property, plant, and equipment (PP&E).The fixed asset balance is used
as a net of accumulated depreciation. A higher fixed asset turnover ratio indicates that a company
has effectively used investments in fixed assets to generate sales.

 Total asset turnover: The asset turnover ratio measures the value of a company's sales
or revenues relative to the value of its assets. The asset turnover ratio can be used as an indicator
of the efficiency with which a company is using its assets to generate revenue .The higher the
asset turnover ratio, the more efficient a company is at generating revenue from its assets.
Conversely, if a company has a low asset turnover ratio, it indicates it is not efficiently using its
assets to generate sales.

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3.Liquidity Ratio: Liquidity ratios are an important class of financial metrics used to determine a
debtor's ability to pay off current debt obligations without raising external capital. Liquidity ratios
measure a company's ability to pay debt obligations and its margin of safety through the calculation of
metrics including the current ratio, quick ratio, and operating cash flow ratio.Current liabilities are
analyzed in relation to liquid assets to evaluate the coverage of short-term debts in an emergency.

There are two kinds of liquid ratio:

 Current Ratio: The current ratio is a liquidity ratio that measures a company's ability to pay short-
term obligations or those due within one year. It tells investors and analysts how a company can
maximize the current assets on its balance sheet to satisfy its current debt and other payables.

 Quick Ratio: The quick ratio is an indicator of a company’s short-term liquidity position and

measures a company’s ability to meet its short-term obligations with its most liquid assets. Since
it indicates the company’s ability to instantly use its near-cash assets (assets that can be converted
quickly to cash) to pay down its current liabilities, it is also called the acid test ratio. An acid test
is a quick test designed to produce instant results—hence, the name

4. Debt utilization ratio: The credit utilization ratio is the percentage of a borrower’s total available
credit that is currently being utilized. The credit utilization ratio is a component used by credit
reporting agencies in calculating a borrower’s credit score. Lowering the credit utilization ratio
can help a borrower to improve their credit score.

This ratio has 3 parts:

 Debt to total assets: The debt to total assets ratio is an indicator of a company's financial

leverage. It tells you the percentage of a company's total assets that were financed by
creditors. In other words, it is the total amount of a company's liabilities divided by
the total amount of the company's assets.

 Times interest earned: The times interest earned (TIE) ratio is a measure of a company's
ability to meet its debt obligations based on its current income. The formula for a company's
TIE number is earnings before interest and taxes (EBIT) divided by the total interest payable
on bonds and other debt.The result is a number that shows how many times a company could
cover its interest charges with its pretax earnings.

 Fixed change coverage: The fixed-charge coverage ratio (FCCR) measures a firm's ability

to cover its fixed charges, such as debt payments, interest expense, and equipment lease
expense. It shows how well a company's earnings can cover its fixed expenses. Banks will
often look at this ratio when evaluating whether to lend money to a business.

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Chapter 2:

Company ratio analysis :

To create the report we had to prepare the ratios for five companies and now have to analyze the ratios.
The five companies that we were allotted were:

1. VF corporation

2. Peloton interactive INC.

3. Aptiv Plc

4. Ebay INC.

5. Etsy INC.

The ratios that are calculated and there analysis is given below.

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 1.VF corporation

Profitability ratios:

Particular 2018 2019

Return on asset 2.45% 12.16%
Profit margin 8.30% 9.09%
Return on equity 6.85% 29.31%

Analysis:
From the ratios it is show that VF corporation has used its assets more efficiently in 2019 than
2018 because the companies return on asset ratio was 2.45% in 2018 and about 12.16% in 2019
and it is known that the higher the return on asset ratio the more efficiently assets have been used
in the company. The company has also made better profit in 2019 than 2018 as it is shown in the
table that the profit margin ratio is higher in 2018 than in 2019. The last ratio is the return on
equity ratio and in this ratio it can be seen that the company has also done good in 2019 as the
percentage is higher than it is in 2018.

Asset utilization ratios:

Particular 2018 2019

Receivable turnover 0.41 times 0.41 times
Average collection period 881.88 days 897.77 days
Inventory turnover 1.64 times 7.13 times
Fixed asset turnover 3.01 times 13.09 times
Total asset turnover 0.29 times 1.34 times

Analysis:
Both of the receivable turnover ratios of 2018 and 2019 are the same which is 0.41 times so the
company had the almost the same time period to collect their receivables. Average collection
period of the receivables are better in 2018 which is 881.88 days rather than 2019 which is 897.77
days. The inventory turnover ratio says the companies spent less in 2019 for their inventories and

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 used them more efficiently which it can be seen that in 2018 the inventory turnover was 1.64
times and in 2019 it was 7.13 times. In fixed asset turnover ratio and in total assets turnover ratio
it can be seen that the company has better and efficiently used their assets in 2019 rather than
2018 which it is shown in the table.

Liquidity ratio:

Particular 2018 2019

Current ratio 149.21% 175.59%
Quick ratio 89.90% 102.58%

Analysis :
Both the current and quick ratio is showing that the company is more capable to repay their short
term loans and other short term debts in 2019 rather than 2018 as the liquidity has been increased
in 2019 that in current ratio it increased from 149.21% to 175.59% that is almost about 26.38%
increase. And in quick ratio it increased from 89.90% to 102.58% that is almost 12.68%

Debt Utilization Ratio:

Particular 2018 2019

Debt to total assets 30.44% 25.69%
Times interest earned 15.13 times 8.90 times
Fixed charge coverage 13.93 times 8.59 times

Analysis :
The debt to total assets ratio is quite satisfying for the company in 2019 as it has decreased up to
4.75% from 2018 that means the companies cash flow has increased in 2019. But the times
interest earned is quite worrying because it has decreased in 2019 that means the company’s
solvency has been decreased to pay creditors in 2018. The fixed charge coverage ratio is also
quite worrying as it also shows the solvency of the company but it has decreased in 2019 to 8.59
times that was 13.93 times in 2018 which is not a really good thing actually.

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 2.Peloton Interactive INC.

Profitability ratio:

Particular 2018 2019

Return on asset 72.12% 8.27%
Profit margin 44.96% 7.82%
Return on equity 61.97% 17.79%

Analysis:

From the ratios it is show that Peloton has not used its assets more efficiently in 2019 than 2018
because the companies return on asset ratio was 72.12%in 2018 and about 8.27% in 2019 and it is
known that the higher the return on asset ratio the more efficiently assets have been used in the
company. The company has also made better profit in 2018 than 2019 as it is shown in the table
that the profit margin ratio is higher in 2018 than in 2019. The last ratio is the return on equity
ratio and in this ratio it can be seen that the company has not done well in 2019 as the percentage
is lower than it is in 2018

Asset utilization Ratios:

Particulars 2018 2019

Receivable turnover 2.98 times 4.98 times
Average collection period 122.09 days 73.23 days
Inventory turnover 17.19 times 6.69 times
Fixed asset turnover 12.04 times 3.66 times
Total asset turnover 1.60 times 1.06 times

Analysis:

receivable turnover ratios are in 2018 it was 2.98 times and in 2019 it was 4.98 times so the
company had better time period to collect their receivables in 2019. Average collection period of
the receivables are better in 2019 which is 73.23 days rather than 2018 which is 122.09 days. The
inventory turnover ratio says the companies spent less in 2018 for their inventories and used them
more efficiently which it can be seen that in 2018 the inventory turnover was 17.19 times and in

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 2019 it was 6.69 times. In fixed asset turnover ratio and in total assets turnover ratio it can be
seen that the company has better and efficiently used their assets in 2018 rather than 2019 which
it is shown in the table.

Liquidity Ratio:

Particular 2018 2019

Current ratio 119.74% 200.03%
Quick ratio 104.87% 153.06%

Analysis :

Both the current and quick ratio is showing that the company is more capable to repay their short
term loans and other short term debts in 2019 rather than 2018 as the liquidity has been increased
in 2019 that in current ratio it increased from 119.74% to 200.03% that is almost about 80.29%
increase. And in quick ratio it increased from 104.87% to 153.06% that is almost 48.19%.

Debt utilization ratio:

Particular 2018 2019

Debt to total asset 216.37% 53.44%
Times interest earned 158.33 times 146.88 times
Fixed charge coverage 2.89 times 5.25 times

Analysis :
The debt to total assets ratio is quite satisfying for the company in 2019 as it has decreased up to
4.75% from 2018 that means the companies cash flow has increased in 2019. But the times
interest earned is quite worrying because it has decreased in 2019 that means the company’s
solvency has been decreased to pay creditors in 2019. The fixed charge coverage ratio is quite
satisfying as it also shows the solvency of the company but it has increased in 2019 to 5.25 times
that was 2.89 times in 2018.

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 3.Aptiv PLC.

Profitability Ratio :

Particular 2018 2019

Return on asset 8.55% 7.35%
Profit margin 7.39% 6.89%
Return on equity 29.07% 24.68%

Analysis:

From the ratios it is show that Aptiv PLC has not used its assets more efficiently in 2019 than
2018 because the companies return on asset ratio was 8.55%in 2018 and about 7.35% in 2019 and
it is known that the higher the return on asset ratio the more efficiently assets have been used in
the company. The company has also made better profit in 2018 than 2019 as it is shown in the
table that the profit margin ratio is higher in 2018 than in 2019. The last ratio is the return on
equity ratio and in this ratio it can be seen that the company has not done well in 2019 as the
percentage is lower than it is in 2018

Asset Utilization ratios:

Particular 2018 2019

Receivable turnover 0.93 times 0.95 times
Average collection period 388.92 days 380.71 days
Inventory turnover 11.30 times 11.16 times
Fixed asset turnover 4.54 times 3.86 times
Total asset turnover 1.16 times 1.06 times

Analysis :

receivable turnover ratios are in 2018 it was 0.93 times and in 2019 it was 0.95 times so the
company had better time period to collect their receivables in 2019. Average collection period of
the receivables are better in 2019 which is 380.71 days rather than 2018 which is 388.92 days.
The inventory turnover ratio says the companies spent less in 2018 for their inventories and used

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 them more efficiently which it can be seen that in 2018 the inventory turnover was 11.30 times
and in 2019 it was 11.16 times. In fixed asset turnover ratio and in total assets turnover ratio it
can be seen that the company has better and efficiently used their assets in 2018 rather than 2019
which it is shown in the table.

Liquidity Ratios :

Particular 2018 2019

Current ratio 129.31% 131.20%
Quick ratio 94.74% 99.48%

Analysis:

Both the current and quick ratio is showing that the company is more capable to repay their short
term loans and other short term debts in 2019 rather than 2018 as the liquidity has been increased
in 2019 that in current ratio it increased from 129.31% to 131.20% that is almost about 1.89%
increase. And in quick ratio it increased from 94.74% to 99.48% that is almost 4.74%

Debt utilization ratio :

Particular 2018 2019

Debt to total assets 70.59% 70.19%
Times interest earned 10.46 times 7.86 times
Fixed charge coverage 9.70 times 7.66 times

Analysis :

The debt to total assets ratio is quite satisfying for the company in 2019 as it has decreased up to
0.4% from 2018 that means the companies cash flow has increased in 2019. But the times
interest earned is quite worrying because it has decreased in 2019 that means the company’s
solvency has been decreased to pay creditors in 2019. The fixed charge coverage ratio is also
quite worrying as it also shows the solvency of the company but it has decreased in 2019 to 7.66
times that was 9.70 times in 2018 which is not a really good thing actually.

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 4. Ebay INC.

Profitability Ratio:

Particular 2018 2019

Return on asset 11.08% 9.83%
Profit margin 23.54% 16.54%
Return on equity 40.28% 62.23%

Analysis:

From the ratios it is show that Ebay INC has not used its assets more efficiently in 2019 than
2018 because the companies return on asset ratio was 11.08% in 2018 and about 9.83% in 2019
and it is known that the higher the return on asset ratio the more efficiently assets have been used
in the company. The company has also made better profit in 2018 than 2019 as it is shown in the
table that the profit margin ratio is higher in 2018 than in 2019. The last ratio is the return on
equity ratio and in this ratio it can be seen that the company has done well in 2019 as the
percentage is higher than it is in 2018.

Asset utilization ratio:

Particular 2018 2019

Receivable turnover 0.40 times 0.38 times
Average collection period 908.67 days 946.29 days
Inventory turnover 12.96 times 19.67 times
Fixed asset turnover 6.73 times 5.05 times
Total asset turnover 0.47 times 0.59 times

Analysis :

receivable turnover ratios are in 2018 it was 0.40 times and in 2019 it was 0.38 times so the
company had better time period to collect their receivables in 2018. Average collection period of
the receivables are better in 2018 which is 908.67 days rather than 2019 which is 946.29 days.

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 The inventory turnover ratio says the companies spent less in 2019 for their inventories and used
them more efficiently which it can be seen that in 2018 the inventory turnover was 12.96 times
and in 2019 it was 19.67 times. In fixed asset turnover ratio it can be seen that the company has
better and efficiently used their assets in 2018 rather than 2019 which it is shown in the table. But
in total asset turnover the company has used their assets more efficiently in 2019 that is also
given in the table.

Liquidity ratio :

Particular 2018 2019

Current ratio 159.99% 115.74%
Quick ratio 141.37% 102.24%

Analysis :

Both the current and quick ratio is showing that the company is less capable to repay their short
term loans and other short term debts in 2019 rather than 2018 as the liquidity has been decreased
in 2019 that in current ratio it decreased from 159.99 to 115.74%% that is almost about 44.25%
increase. And in quick ratio it decreased from 141.37% to 102.24% that is almost 39.13%

Debt utilization Ratio:

Particular 2018 2019

Debt to total assets 72.47% 84.21%
Times interest earned 9.34 times 8.09 times
Fixed charge coverage 8.98 times 7.96 times

Analysis :

The debt to total assets ratio is not satisfying for the company in 2019 as it has increased up to
11.74% from 2018 that means the companies cash flow has decreased in 2019. And the times
interest earned is quite worrying because it has decreased in 2019 that means the company’s
solvency has been decreased to pay creditors in 2019. The fixed charge coverage ratio is also
quite worrying as it also shows the solvency of the company but it has decreased in 2019 to 7.96
times that was 8.98 times in 2018 which is not a really good thing actually.

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 5.ETSY INC.

Profitability ratio:

Particular 2018 2019

Return on asset 8.59% 6.25%
Profit margin 12.83% 11.71%
Return on equity 19.05% 23.58%

Analysis :

From the ratios it is show that ETSY INC has not used its assets more efficiently in 2019 than
2018 because the companies return on asset ratio was 8.59% in 2018 and about 6.25% in 2019
and it is known that the higher the return on asset ratio the more efficiently assets have been used
in the company. The company has also made better profit in 2018 than 2019 as it is shown in the
table that the profit margin ratio is higher in 2018 than in 2019. The last ratio is the return on
equity ratio and in this ratio it can be seen that the company has done well in 2019 as the
percentage is higher than it is in 2018.

Asset utilization ratio:

Particular 2018 2019

Receivable turnover 1.96 times 1.56 times
Average collection period 185.84 days 233.52 days
Inventory turnover 17.45 times 4.10 times
Fixed asst turnover 5.02 times 5.64 times
Total asset turnover 0.66 times 0.53 times

Analysis:

receivable turnover ratios are in 2018 it was 1.96 times and in 2019 it was 1.56 times so the
company had better time period to collect their receivables in 2018. Average collection period of
the receivables are better in 2018 which is 185.84 days rather than 2019 which is 233.52 days.
The inventory turnover ratio says the companies spent less in 2018 for their inventories and used

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 them more efficiently which it can be seen that in 2018 the inventory turnover was 17.45 times
and in 2019 it was 4.10 times. In fixed asset turnover ratio it can be seen that the company has
better and efficiently used their assets in 2019 rather than 2018 which it is shown in the table.
Again in total asset turnover the company has used their assets more efficiently in 2018 that is
also given in the table.

Liquidity Ratio:

Particular 2018 2019

Current ratio 607.06% 488.54%
Quick ratio 576.19% 382.86%

Analysis:

Both the current and quick ratio is showing that the company is less capable to repay their short
term loans and other short term debts in 2018 rather than 2019 as the liquidity has been decreased
in 2019 that in quick ratio it decreased from 576.19% to 382.86% that is almost about 193.33%
increase. And in current ratio it decreased from 607.06% to 382.86% that is almost 193.33%

Debt Utilization Ratio:

Particular 2018 2019

Debt to total assets 55.54% 73.64%
Times interest earned 9.34 times 8.09times
Fixed charge coverage 2.66 times 3.30 times

Analysis :

The debt to total assets ratio is satisfying for the company in 2019 as it has increased up to
73.64% from 2018 that means the companies cash flow has increased in 2019. And the times
interest earned is not satisfying because it has decreased in 2019 that means the company’s
solvency has been decreased to pay creditors in 2019. The fixed charge coverage ratio is also
satisfying as it also shows the solvency of the company and it has increased in 2019 to 3.30 times
that was 2.66 times in 2018 which is actually a really good thing

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 Chapter - 3
Comparison between 5 companies

Return on Assets : All of the companies have changes in the Return on assets ratio from 2018 to
2019 so the changes are of VF corporation is 9.71% increase in 2019, Peloton interactive INC. is
63.85% decrease , Aptiv PLC has 1.2% decrease , Ebay INC. has 1.25% decrease and last of all
ETSY INC has 2.34% decrease. So increase means that the company has done better in the recent
year that means in 2019 so according to that VF corporation has done good and comparatively Aptiv
PLC. And Ebay INC. has done better than the other companies Though their ratio has also decreased
but it is comparatively lower than the other companies.
8
6
4
2
0
-2
-4
-6

Profit margin: All of the companies have changes in the Profit margin ratio from 2018 to
2019 so the changes are of VF corporation is 0.79% increase in 2019, Peloton interactive INC. is
37.14% decrease , Aptiv PLC has 0.5% decrease , Ebay INC. has 7.00% decrease and last of all
ETSY INC has 2.38%decrease. So increase means that the company has done better in the recent
year that means in 2019 so according to that VF corporation has done good and comparatively
Aptiv PLC. And ETSY INC. has done better than the other companies Though their ratio has also
decreased but it is comparatively lower than the other companies.

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 8
6
4
2
0
-2
-4
-6

Return on equity : All of the companies have changes in the return on equity ratio from 2018 to
2019 so the changes are of VF corporation is 22.46% increase in 2019, Peloton interactive INC.
is 44.18% decrease , Aptiv PLC has 4.39% decrease , Ebay INC. has 21.95% increase and last of
all ETSY INC has 4.53% increase. So increase means that the company has done better in the
recent year that means in 2019 so according to that VF corporation, EBAY INC. and ETSY INC.
has done good.
8
6
4
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Receivable turnover : All of the companies have changes in the Receivable turnover
ratio from 2018 to 2019 so the changes are of VF corporation is no difference in 2019, Peloton
interactive INC. is 2 times increase , Aptiv PLC has 0.02 times increase , Ebay INC. has 0.02
times decrease and last of all ETSY INC has 0.4 times decrease. So increase means that the
company has done better in the recent year that means in 2019 so according to that VF
corporation , Peloton interactive INC. and Aptiv PLC. has done good than the other companies.
8
6
4
2
0
-2
-4
-6

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 Average collection period : All of the companies have changes in the average collection period from
2018 to 2019 so the changes are of VF corporation is 15.89 days increase in 2019, Peloton interactive
INC. is 48.86 days decrease , Aptiv PLC has 8.21 days decrease , Ebay INC. has 37.62 days increase
and last of all ETSY INC has 47.68 days increase. So decrease means that the company has done
better in the recent year that means in 2019 so according to that Peloton Interactive INC. and Aptiv
PLC. Has done good and comparatively VF corporation has done better than the other companies as
other companies increase is greater than VF corporation.
10
0
-10

Inventory Turnover: All of the companies have changes in the inventory turnover ratio from
2018 to 2019 so the changes are of VF corporation is 5.49 times increase in 2019, Peloton
interactive INC. is 10.5 times decrease , Aptiv PLC has 0.14 times decrease , Ebay INC. has 6.71
times increase and last of all ETSY INC has 13.35 times decrease. So increase means that the
company has done better in the recent year that means in 2019 so according to that VF
corporation has done good and comparatively Aptiv PLC. And ETSY INC. has done better than
the other companies Though their ratio has also decreased but it is comparatively lower than the
other companies.
8
6
4
2
0
-2
-4
-6

Fixed asset turnover : All of the companies have changes in the inventory turnover ratio from
2018 to 2019 so the changes are of VF corporation is 10.08 times increase in 2019, Peloton
interactive INC. is 8.38 times decrease , Aptiv PLC has 0.68 times decrease , Ebay INC. has 1.68
times decrease and last of all ETSY INC has 0.62 decrease. So increase means that the company
has done better in the recent year that means in 2019 so according to that VF corporation has
done good and comparatively Aptiv PLC. And ETSY INC. has done better than the other
companies Though their ratio has also decreased but it is comparatively lower than the other
companies.

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 6
2
-2
-6

Total assets turnover : All of the companies have changes in the inventory turnover ratio from
2018 to 2019 so the changes are of VF corporation is 1.05 times increase in 2019, Peloton
interactive INC. is 0.54 times decrease , Aptiv PLC has 0.1 times decrease , Ebay INC. has 0.12
times increase and last of all ETSY INC has 0.13 times increase. So increase means that the
company has done better in the recent year that means in 2019 so according to that VF
corporation and ETSY INC. has done good and comparatively Aptiv PLC. Though their ratio has
also decreased but it is comparatively lower than the other companies.
10
0
-10

Current ratio: All of the companies have changes in the current ratio from 2018 to 2019 so the
changes are of VF corporation is 26.38% increase in 2019, Peloton interactive INC. is 80.29%
increase , Aptiv PLC has 1.89% increase , Ebay INC. has 44.25% decrease and last of all ETSY
INC has 118.52% decrease. So increase means that the company has done better in the recent
year that means in 2019 so according to that VF corporation , Peloton interactive INC. and Aptive
PLC. has done good than the other companies.

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 8
6
4
2
0
-2
-4
-6

Quick ratio : All of the companies have changes in the current ratio from 2018 to 2019 so the
changes are of VF corporation is 12.68% increase in 2019, Peloton interactive INC. is 48.19%
increase , Aptiv PLC has 4.74% increase , Ebay INC. has 39.13% decrease and last of all ETSY
INC has193.33% decrease. So increase means that the company has done better in the recent year
that means in 2019 so according to that VF corporation , Peloton interactive INC. and Aptive
PLC. has done good than the other companies.

6
2
-2
-6

Debt to total assets: All of the companies have changes in the current ratio from 2018 to 2019 so
the changes are of VF corporation is 4.75% decrease in 2019, Peloton interactive INC. is
162.93% decrease , Aptiv PLC has 0.4% decrease , Ebay INC. has 11.74% increase and last of all
ETSY INC has 18.1% increase. So decrease means that the company has done better in the recent
year that means in 2019 so according to that VF corporation , Peloton interactive INC. and Aptive
PLC. has done good than the other companies.
8
6
4
2
0
-2
-4
-6

Times interest earned : All of the companies have changes in the current ratio from 2018 to
2019 so the changes are of VF corporation 6.23 times decrease in 2019, Peloton interactive INC.
is 11.45 times decrease , Aptiv PLC has 2.04 times decrease , Ebay INC. has 1.25 times decrease
and last of all ETSY INC has 0.83 times decrease. So decrease means that the company has not

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 done good in the recent year that means in 2019 so according to that Ebay INC. , ETSY INC.
Aptive PLC. has done good than the other companies though their ratio is saying that it decresed
but still better than the other companies.
6
2
-2
-6

Fixed charge coverage : All of the companies have changes in the current ratio from 2018 to
2019 so the changes are of VF corporation 6.23 times decrease in 2019, Peloton interactive INC.
is 2.36 times increase, Aptiv PLC has 2.04 times decrease , Ebay INC. has 1.02 times decrease
and last of all ETSY INC has 0.64 times increase. So increase means that the company has done
good in the recent year that means in 2019 so according to that Peloton and Etsy INC. has done
good in this year.
10
0
-10

Chapter -4

Would I invest in the company? :

According to the ratios we would invest in VF corporation, Aptive INC. and Peloton interactive
INC. as their Profitability and liquidity ratios are better than other two companies.

Supply raw materials on credit? :

According to the ratios we would invest in Peloton Interactive INC. , Aptive INC. and ETSY
INC. as their Debt utilization ratios are better than other company ratios

Provide lond term loan as a banker? :

Yes we would provide long term loan to all of these companies as bankers because due to covid-
19 these businesses may faced some issues but they are well reputed companies and they have
good cashflow in other years so our answer is YES, we will provide a long term loan as bankers
to these companies.

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 References

Yahoo Finance - Stock Market Live, Quotes, Business & Finance News. (n.d.). Retrieved
December 28, 2020, from https://finance.yahoo.com/

Yahoo Finance - Stock Market Live, Quotes, Business & Finance News. (n.d.). Retrieved
December 28, 2020, from https://finance.yahoo.com/quote/EBAY/

Yahoo Finance - Stock Market Live, Quotes, Business & Finance News. (n.d.). Retrieved
December 28, 2020, from https://finance.yahoo.com/quote/APTV?p=APTV&.tsrc=fin-srch

Yahoo Finance - Stock Market Live, Quotes, Business & Finance News. (n.d.). Retrieved
December 28, 2020, from https://finance.yahoo.com/quote/ETSY?p=ETSY&.tsrc=fin-srch

Yahoo Finance - Stock Market Live, Quotes, Business & Finance News. (n.d.). Retrieved
December 28, 2020, from https://finance.yahoo.com/quote/PTON?p=PTON&.tsrc=fin-srch

Yahoo Finance - Stock Market Live, Quotes, Business & Finance News. (n.d.). Retrieved
December 28, 2020, from https://finance.yahoo.com/quote/VFC?p=VFC&.tsrc=fin-srch

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