This document presents an analysis of various financial ratios for Twitter and Facebook for 2014 and 2015. It defines different types of ratios including profitability, efficiency, return, liquidity, and capital structure ratios. Specific ratios are then shown in a table comparing Twitter and Facebook for 2014 and 2015, such as gross margin, net margin, ROA, current ratio, quick ratio, and EPS.

1. FINANCIAL RATIOS ASSIGNMENT 2016
PRESENTED BY:
ALOK PANDEY 16125005
E.KISAN PATRO 16125016
KRITI DONERIA 16125022
PRAKHAR BAROLE 161250

2. PROFITABILITY RATIOS
CLASS OF FINANCIAL METRICS THAT ARE USED TO ASSESS A BUSINESS'S ABILITY TO GENERATE EARNINGS COMPARED
TO ITS EXPENSES AND OTHER RELEVANT COSTS INCURRED DURING A SPECIFIC PERIOD OF TIME.

3. EFFICIENCY RATIOS
TYPICALLY USED TO ANALYZE HOW WELL A COMPANY USES ITS ASSETS AND LIABILITIES INTERNALLY.

4. RETURN RATIOS
ROE MEASURES A CORPORATION'S PROFITABILITY BY REVEALING HOW MUCH PROFIT A COMPANY GENERATES WITH
THE MONEY SHAREHOLDERS HAVE INVESTED.

5. LIQUIDITY RATIOS
MEASURE A COMPANY'S ABILITY TO PAY DEBT OBLIGATIONS AND ITS MARGIN OF SAFETY

6. CAPITAL STRUCTURE RATIOS
INDICATORS THAT MEASURE THE PROPORTION OF DEBT IN A COMPANY’S CAPITAL STRUCTURE.

7. EPS AND PRICE/EARNINGS

8. Twitter Faecbook Twitter Facebook
2014 2015
Profitability ratios Gross Margin 68% 67%
Net Margin -41.18% -23.49%
ROA -12.91% -8.67%
Efficiency ratios
Return ratios
Liquidity Ratios Current ratio 1081% 866%
Quick Ratio 1081% 866%
Operating cash flow ratio 920% 591%
Capital structure ratios Equity Ratio
Debt Ratio
D/E Ratio 37%
EPS .96 .79
Price/Earnin
COMPARATIVE ANALYSIS