DICOM VS Captiva Case Study 1. What are the key business success factors and risks for DICOM and Captiva?
DICOM is a Swiss company that has sales in Europe, Asia, and the United States. They provide services ranging from structured, semi-structured, and unstructured information capture products. DICOM also sells hardware, primarily scanners, through its group sales force. DICOM has differentiated their product offering for the different regions that it operates. And the products that are provided are developed through research and development and also acquisitions. This allows DICOM to provide a diverse set of products that can cover many markets and many different users. DICOM operates in the U.S. under Kofax capture software that
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But like DICOM, Captiva has business risks that they need to be aware of in their industry. Captiva has 80% of their sales in the United and States and cannot hedge their risks if a crisis develops in that country. Captiva has a large amount of revenues coming from resellers and a drop in this segment could lose the company millions. 2. Do the financial statements for the two firms enable you to compare their performance? If not, what changes need to be made to ensure comparability?
The financial statements are for two different governmental requirements from two different countries. DICOM operates under the European system of IFRS and Captiva operates under GAAP. With this said, just looking at the financial statements makes it extremely difficult to determine performance. To be able to make a comparison between the two companies easier, their needs to be a reconciliation of the two different accounting systems. IFRS and GAAP need to be put together to form one individual accounting entity. What exactly need to be changed are the standards. When looking at the balance sheet, you are able to see just how different the systems operate. In GAAP, cash is the first line, but in IFRS Fixed assets are the first line. Changing to a consolidated system would allow for the best way to make an accurate comparison between two firms in different geographical regions. 3. What financial ratios would you use to judge performance of
In this report there are vertical analysis and horizontal analysis with these two companies. The comparison between the
Based upon my knowledge learned on financial reporting, I had compared to companies reporting statistics. The two companies in comparison are PepsiCo Incorperated and The Coca-Cola Company in which both have reported annual statistics for 2004 and 2005. During my comparison of net incomes, gross expenses, stock statistics, and assets accumulations, I have suggested some strategies for each business to take into consideration for better future results. As an accountant in training, I will be giving specific details of my analysis and recommendations, as these are my opinions for financial success.
Based on your analysis above, make at least two (2) recommendations as to how each company could improve its working capital positions. Provide support for your recommendations.
Therefore, due to these differences in approach of the management, the profitability margins are so different for these two companies.
After identifying and developing a comprehensive panorama on the activity of both companies, their respective targeted customers and the industry in which they operate, the next step involves examining and analyzing the financial records of both companies. To be able to generate accurate interpretations based on the financial parameters and standing of both companies, I utilized the annual financial reports for fiscal years 2012, 2013 and 2014 to help me develop a better understanding and thorough perspective. Based on the presented information in the entirety of the report, also accounting for balance sheet, income statement, cash flow statement, stockholder’s equity statement and related
1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?
Do you think that either firm can attain a sustainable competitive advantage in this business?
3. Using the cash flow indicator and investment valuation ratios, discuss which company is more likely to have satisfied stockholders.
Compare and contrast financial accounting and managerial accounting by answering the following questions in the matrix provided. Cite any sources you use in accordance with APA guidelines.
With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?
Company D has higher current ratio and quick ratio which is higher 2.43x and 2.3x respectively. This was because Company D had higher cash and short term investment which was 55.6% while Company C only has 1.4%. It proves that Company D is financially conservative and it matches with the second described company.
In comparing the companies to each other it is important to take into account the liquidity or ability of a firm to meet its current obligations, and solvency
With the objective to understand the business performance of the two entities, we reviewed the 2007 financial statements of both company and tried to obtain some insight on the profitability and solvency of each entity.
1c) Describe on of the differences in financial reporting between a Swiss company and the reporting in another country?