Week 3: Discussion
There are several sources of financial information on publicl
Week 3: Discussion
There are several sources of financial information on publicly traded firms. Use Morningstar.com (or any other source) to obtain the main financial data and ratios for Verizon (VZ), AT&T (T), Target (TGT), and Kohl’s (KSS) to discuss/answer the following questions. The symbol in parentheses after each firm is the stock symbol for the firm that should be entered into the ‘Quote’ input area at the top of the Morningstar website to obtain information on the company. Once information on the firm is obtained, the ‘Financials’ area will contain Revenues, expenses, net income, etc… The ‘Dividends’ area will contain dividend paid and dividend payout. You can click on the ‘Operating Performance’ link to obtain information on calculated key ratios. There is also a ‘Valuation’ link for valuation ratios such as Price/Earnings.
1. Comparing Verizon (VZ) and AT&T (T), which company has more leverage? Which one is more efficient in collecting receivables? and which one is trading at a higher valuation in terms of earnings? For each question, use the most recent financial data on morningstar.com to justify your answer. Also calculate the internal growth rate for VZ.
2. Comparing Target (TGT) and Kohl’s (KSS), which company has more leverage? Which one is more efficient in managing inventory? and which one is trading at a higher valuation in terms of earnings? For each question, use the most recent financial data on morningstar.com to justify your answer. Also, calculate the sustainable growth rate for TGT.