Case 7 The Financial Detective 2005

2904 Words Mar 9th, 2015 12 Pages
The Financial Detective 2005

Beer

Beer Company 1 is a “national brewer of mass-market consumer beers sold under a variety of brand names” (pg. 120). As one might expect, this national company has “an extensive network of breweries and distribution systems and owns some beer-related businesses” (pg. 120). It also owns several major theme parks.

Beer Company 2 is a brewer of “seasonal and year-round beers with smaller production volume and higher prices” that “outsources most of its brewing activity” (pg. 120). It is financially conservative, and has undergone a “major cost-savings initiative to counterbalance the recent surge in packaging and freight costs” (pg. 120).

Beer Company C has net fixed assets of 54.7% of total assets
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I believe Computer Company E is Company 1.

Computer Company E’s Intangibles represent 0.0% of its total assets, while Computer Company F’s Intangibles are 1.2% of its total assets. Intangibles like patents (for highly differentiable devices) and a company brand (led by its charismatic founder) have value. I believe Computer Company F is Company 2.

SG&A Expenses for Computer Company E are 9.7% of its total sales, while they are 23.1% for Computer Company F. Higher selling, general and administrative expenses could be the result of having retail stores (building costs, utilities, personnel) to sell products; therefore, I believe Computer Company F is Company 2.

Computer Company F’s Net Income is 3.3% of its total sales, while Computer Company E’s Net Income is 6.2% of its total sales. Computer Company F’s lower net income could be a result of its “beginning to recover from a dramatic decline in its market share”, which is why I believe Computer Company F is Company 2.

Computer Company 1, the mail-order sales, customizable electronics company, is Company E. Dell, Inc.
Computer Company 2, the highly differentiable electronic device company, is Company F. Apple, Inc.

Newspapers

Newspaper Owner 1 is a “diversified media company that generates most of its revenues through newspapers sold around the country and around the world” (pg. 122). Competition for subscribers and advertising revenues

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