Financial Analysis

[Name of the institute]Financial Analysis

Part A Ans1

As a credit manager, I would choose Jones to approve for short term credit. On the basis of some ratios, it would be beneficial to invest in Jones.

Profit Margin: As the calculation shows Jones has 7% whereas Smith is on 5%. This shows the positivity of a company and how beneficial it would be to invest in it. The larger the profit rate the more the possibility of growth quality and good stock price.

Return on Asset: This again shows how total assets are employed and managed to make profit. Higher return mean the ...