Ratios:
Two competitors that I am using for this assignment are Electronic Arts (EA) and THQ. They are both publishers for video games. Currently EA is the largest publisher in the world.

EA Balance Sheet

THQ Balance Sheet

All of these values that are displayed are in thousands unless noted otherwise.

EA:
Current Ratio:
Assets / Liabilities
5146000 / 1114000 = 4.62
There are $4.62 of current assets available to meet each $1 of currently maturing obligations.

Debt to Capital:
Current Liabilities + long – term liabilities / Capital + Total Liabilities
1026000 + 88000 / 4032000 + 88000 = 0.270 = 27% of assets are financed by creditors.

Gross Profit:
Gross Profit / Net Revenues
1879000 / 3091000 = 0.608 = 61% of sales.

Profit to Sales:
Income / Net Revenues
39000 / 3091000 = 0.012 = 1%

Market to Book: (not in thousands)
Market Capitalization / Shareholder Equity
16450000000 / 4303000000 = 3.823


THQ:
Current Ratio:
Assets / Liabilities
1013541 / 244584 = 4.14
There are $4.14 of current assets available to meet each $1 of currently maturing obligations.


Debt to Capital:
Current Liabilities + long – term liabilities / Capital + Total Liabilities
303476 + 39979 / 774828 + 39979 = 0.667 = 67% of assets are financed by creditors

Gross Profit:
Gross Profit / Net Revenues
393682 / 1026856 = 0.383 = 38% of sales.

Profit to Sales:
Income / Net Revenues
78206 / 1026856 = 0.076 = 7%

Market to Book: (not in thousands)
Market Capitalization / Shareholder Equity
1490000000 / 774828000 = 1.923