Critical Profitability Ratio Analysis under Limelight: Ambev S.A. (NYSE:ABEV), Foot Locker, Inc. (NYSE:FL)

Waking on tracing line of previous stocks, Ambev S.A. (NYSE:ABEV) also making a luring appeal, share price swings at $4.72 with percentage change of -0.84% in most recent trading session.  Ambev S.A. (ABEV) recently announces its results for the 2016 third quarter. The following operating and financial information, unless otherwise indicated, is presented in nominal Reais and prepared according to International Financial Reporting Standards (IFRS), and should be read together with our quarterly financial information for the nine-month period ended September 30, 2016 filed with the CVM and submitted to the SEC.

The firm attains analyst recommendation of 2.70 on scale of 1-5 with week’s performance of -7.93%. The firm attains analyst recommendation of 2.70 out of 1-5 scale with week’s performance of -7.93%.

Moving on tracing line, Foot Locker, Inc. (NYSE:FL) need to consider for profitability analysis, in latest session share price swings at $74.25 with percentage change of 0.77%.

The Co has positive 8.30% profit margin to find consistent trends in a firm’s earnings. Gross profit margin and operating profit margin are its sub parts that firm have 33.90% and 12.70% respectively. FL has returns on investment of 20.30%. The returns on assets was 16.90% that gives an idea about how efficient management is at using its assets to generate earnings. It has returns on equity of 24.30%, which is measuring profitability by disclosing how much profit generates by FL with the shareholders’ money.

The firm attains analyst recommendation of 1.90 on scale of 1-5 with week’s performance of -0.69%. The firm current ratio calculated as 4.60, this value is acceptable if it lies in 1.3% to 3%. But its varies industry to industry. To strengthen these views, active industry firm has Quick Ratio of 2.10, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 0.05, sometimes its remain same with long term debt to equity ratio.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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