The Financial Detective
Kyle Cornelius
This case set contains information for two separate companies in eight different industries. Our task is to differentiate the companies based on what we know about them from a qualitative stand point and the financial data that we are provided.
The first one we will examine is in the healthcare field. One firm develops and manufactures prescription drugs and sells them to healthcare professionals directly using sales people. They have several unique patents and pursue an aggressive research and development strategy. The other manufactures non-prescription drugs, toiletries, and baby products for the mass-market. They use distributors and retailers to get their products in the hands of
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Note that Firm F also aims to have a broad product line, when examining these numbers, one can speculate that more of their products are made to specific client specifications, thereby increasing the proclivity for on-demand-manufacturing, while Firm E sells lower end computers to the consumer market and has a more uniform product line. The liabilities of Firm E is lower than that of Firm F. This tells us that because F is an established industry leading firm, they are able to take on more liabilities than Firm E. Based on this we conclude that Firm E is the one that aims for low cost, high volume consumer computers while Firm F manufactures computers for businesses and aims to be a quality leader of the industry. The fourth case focuses on firms in the field of retail. One firm is a large national chain that sells a large variety of products and sells largely on credit. The other is a rapidly growing chain of home improvement stores set up in a warehouse style that sells goods at a low price and tries to gain as much market share as possible and enjoy high unit sales volume. Firm G has much higher receivables than Firm H. (60.7 to 4.4) This would indicate that Firm G is the one that sells largely on credit. Firm G has lower inventory than Firm H. (12.2 to 29.7) This would
In this report there are vertical analysis and horizontal analysis with these two companies. The comparison between the
* Choose two companies from the same industry that have been deemed successful by the standards of that industry. Analyze each of the company’s business models. Next, evaluate the characteristics of
You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.
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?
You would not buy a home, car or other large purchases without researching what product offered you the most for your money. The same is true when investing in a company. Investors do avid research on multiple companies to find what company matches the investors' criteria. In this paper Team C will research both AT&T and Verizon's financial documents. Team C will compare selected ratios, cash flow and make recommendations how both companies can manage cash flow for the future.
Executive Summary. Wathen is attempting to value the proposed acquisition of Pinkerton in an effort to determine whether bids of $85 million to $100 million is value enhancing for CPP’s shareholders. Additionally, Wathen must choose between two financing options: (1) raising $100 Million via a $75 million debt structure at 11.5% interest rate together with a $25 million equity investment for a 45% stake in the combined company and (2) a $100 million debt facility at 13.5% interest rate.
In order to find out the exact firm by analysing the financial structure of typical firms, first we need to separate those firms which have zero inventory turnover (A, B, F and H) from those firms which have zero debt ratio which in our case are (E, H and J) and we use the information to narrow down the possibilities of each firm. In this case there are three groups of companies:
Similarly, both companies had a product differentiation strategy, with the aim of being distinctly set apart from their competitors by the viewing market. However, different elements of this strategy were focused on by the firms. For instance,
Comparing financial data from statements can help determine whether or not it is a sound decision to invest in a company. This information can also help determine if a company is operating successfully and areas of risk within the company. This analyzing can help one company compare itself to another company and ensure that they are able to compete with other companies in their respective industries. PepsiCo and Coca-Cola are two major companies that make a majority of their money from producing and selling soft drinks. To compare these companies we are going to use vertical and horizontal analyses to see if these
G is the communication equipment firm because it has the lower Profit Margin and higher Accounts Receivable.
A vertical and horizontal analysis of each company's balance sheet and income statement in this particular case will be enlightening. A vertical analysis will for instance shed some light on how revenue is being used. In this case, each component of the companies' financial statements will be converted into a percentage of a key component of either the balance sheet or the income statement. A special common size balance sheet and income statement will be utilized to ease comparison. The
All managers need to understand where value comes from in their firm. The purpose of this analysis is to identify the financial strategy and performance of this particular publicly traded company. The process of understanding the risk and profitability of a company by analyzing reported financial info, especially annual and quarterly reports are vital to identifying the company’s overall financial performance. I wanted to analyze Coca Cola because the company has so much history and is one of the most recognizable brands in the world. I have always enjoyed researching food and beverage companies
In this case, a summary sheet which contains 14 sets of financial data from 14 different industries is provided. The task is to match 14 different firms with 14 industries by distinguishing the differences (e.g. sources of financing, profitability, the inventory turnover and the accounts receivable collection period) in the financial structures.
We believe that Company I represents the Smaller Producer of printing papers and Company J represents the World’s Largest Market of Paper.
Company A has higher receivables (12.8%) than Company B, 8.1%. This is probably because Company A distributes their products to institutions like hospitals, clinics and etc. Institutions take