2 pages paper accounting

2 pages paper accounting - When someone decides to invest...

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When someone decides to invest into a company there are many things that need to be interpreted beforehand. Financial analysis ratios are one of the most important determinates. Whether an investor decides to invest short-term or long-term will determine what ratios the investor should look at most closely. Our investment group has chosen to make a short-term investment, resulting in the focus on the debt to equity ratio, return on assets ratio, quick ratio and gross profit ratio. The information that these ratios provide us help us justify our decision to invest in the Lockheed Martin Corporation and not the Northrop Grumman Corporation. As a group of potential investors we feel as though a short-term investment in Lockheed Martin would be both safer and more profitable. The information about each ratio given above helped us to come to this conclusion and feel more confident about Lockheed Martin’s future.
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