Case synopsis:
Company S is an aircraft company which was formed by Person M and Person T before 10 years. The company manufactures and sells airplanes. However, the company has received fair reviews on its products for reliability and safety. It can complete its manufacturing process of manufacturing within 5 weeks.
Person C was hired recently by the Company S to assess and evaluate the financial performance of the company. He graduated with a finance degree and has been employed in a finance department of a company. Person M and T have given the financial statement of Company S and Person C has collected the ratios of industry of light airplane manufacturing.
Characters of the case:
- Company S
- Person C
Adequate information:
- Company S has niche market which sells initially to individuals who own and fly their own airplanes.
- Company S takes up a different method for its operations.
To discuss: The reason for each ratio for viewing it as good or bad in comparison to the industry and the comparison of inventory ratio of Company S to that of the average industry.
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F371 Essn. of Corporate Finance >C< By Ross MCG Custom ISBN 9781259320576
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