Geological Musuem

In conclusion from the report and based on the ratios and earnings provided by both companies, I personally would lean towards PZ Cussons as a more favorable company to invest. PZ Cussons is performing better than Mc Bride as a company with significantly higher net profit. Although the Return on Equity for PZ Cussons is not as attractive as Mc Bride, PZ Cussons Return on Equity is increasing annually and this also provides insights that the company is growing significantly to allow improves in its Return on Equity. One of the main reasons I lean towards PZ Cussons as more favorable investment entity s due to the Liquidity and Working Capital test. PZ Cussons has a significantly higher current ratio and quick ratio, indicating the company's stronger financial status compared to Mc Bride. PZ Cussons has a higher liquidity and also leverages against its debt indicating the company is more capable in handling its debt effectively. In addition, PZ Cussons manage to increase the gaps between payable payment and receivable collections, allowing the company to have a more significant cash flow as compare to Mc Bride.

The other main reason PZ Cussons was a better investment will be due to the debt or equity ratio test. Based on the calculation, the Mc Bride percentile is considerably higher compared to PZ Cussons making the investment in Mc Bride significantly riskier compared to PZ Cussons since Mc Bride seems to have a slightly more debt than PZ Cussons. Finally another indicator will be the Price-Earnings (P/E) Ratio, which also indicated the market's expectation of the company. PZ Cussons P/E ratio is significantly higher indications that the company is expecting to perform better which also mean it provides an opportunity for an investor to purchase the share at a lower value and sells it later when its gets significantly higher. PZ Cussons share price is significantly higher and the dividend payout is lower than Mc Bride, this also may indicate that