Ratio Analysis for Almeera and Widam Companies - Essay Example

Widam has higher EPS which is an indication that it is making more money for its shareholders than Almeera. In addition, its high P/E ratio indicates that its investors are willing to pay more per dollar of earnings. Therefore, Widam is a better investment than Almeera.

In conclusion, though the companies have fluctuating performance, it is clear that Widam is a better investment than Almeera because of the following reasons. First, it is relatively liquid and can meet its short-term obligations with lots of ease. Secondly, it is Widam is more efficient in its operations than Almeera and uses few assets to generate more sales revenue. Thirdly, even though Almeera is more profitable, Widam is also relatively profitable and generates sufficient returns for its shareholders. In addition, even though it uses relatively more debts, it has infinite cover for its interest expense. Finally, it makes more money for its shareholders.