companies with certain industries tend to have similar financial make-ups. This is because companies within an industry face many of the same economic forces. Some of those economic forces would include government regulation‚ consumer sentiment towards the product or service‚ consumer demographics‚ and international appeal and competition. However‚ when you take a deeper look at the companies within the industry you will see differences in their financial statements because companies must tailor a competitive
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presented in our case‚ the health products. Company A and B of the health products industry have a different scope in terms of their customer and market base. Company A is the world’s largest prescription-pharmaceutical company and obviously has more market share than Company B. In fact at first glance‚ we can see that for most data of the assets‚ liability& Equity‚ and Income/Expenses section‚ company A values are higher than those of company B. Taking a closer look at the financial data and ratio
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Common-Sized Financial Data and Ratios Assets Health Products Beer Computers Books & Music Paper Tools Retail Newspapers A B C D E F G H I J K L M N O P Cash & Short Term Investments 24.2 16.1 1.4 55.6 42.2 67.9 54.8 16.2 7.6 5.9 9.3 6.5 4.6 7 0.6 1.1 Receivables 12.8 8.1 4.3 11.9 19 13 nmf 2.3 8.8 10.9 18.9 23.7 1.4 17 4.6 9.9 Inventories 7 5.4 4.3 11.7 2 1.3 14.8 38.6 7.9 14.4 17.8 14.9 24.5 16.7 0.8 0.8 Current Assets - Other 7.2 2.5 1.3 2.4 9.5 5.5 8.6 2
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which is the seller of the popular Sam Adams line of beers. Boston beer’s products are part of a microbrew. Company D’s proportion of cash and cash equivalents‚ which is extremely higher than company C’s show their conservative approach to its financial
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technical representatives and mobile franchise dealers. The global manufacturer would be company L because they would have higher selling‚ general and administrative costs‚ in this case 38.9 compared to 24.8.The company with the specialized tools from mobile franchise would have higher cost of goods sold‚ in this case 61.0 compared to 51.6. Retail Both companies are large discount retailers. One company carries a wide variety of nationally advertised general merchandise. The other company is
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Jerome Bruner: Laws‚ Life‚ and Literature Jerome Bruner states “we have implicit intuitions about how to make a story or how to get the point of one.” The book starts by explaining the structure of narrative‚ using the concept of peripetia. “Peripetia is a sudden reversal of fortune stories‚ presumably in contrast to logic or science‚ seen too susceptible to ulteriority‚ to special pleading and particularly to malice. Bruner argues that stories focus not on what is‚ but what could be or might
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Case 6 The Financial Detective‚ 2005 Health Products Company A has a much higher ratio of Cash & Short Term Investments‚ Receivables‚ and Inventories (24.2%‚ 12.8%‚ 7.0%) as compared to Company B (16.1%‚ 8.1%‚ 5.4%) which is lower in every asset category ratio besides Intangibles and Investments & Advances‚ 46.1% to 22.2% and 3.1% to .1%. This proves that Company A has cash on hand from the sale of side divisions and that they have a large production facility. Company B is a more diverse company
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Case 6‚ Financial Detective‚ 1996 NEWSPAPERS : 1) Centralized (Worlwide) - NEW YORK TIMES Fierce competition price depends on the market More efficient ° Higher inventory turn L ° Beta closed to 1.00 (worldwide) L 2) Decentralized (Midwest) - LEE ENTREPRISE Monoplolist price like you want ° Higher gross margin K ° Higher other assets (goodwill) K STEEL : 1) Big - INLAND ° Lower receivable turn O ° higher D/E (older‚ stable) O 2) Small - NUCOR
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The Financial Detective‚ 2005 Financial characteristics of companies vary both from industry to industry and within a single industry for a variety of reasons. The challenge for any company in planning its strategy is the consideration of the industry’s economics in conjunction with their own strategy to help the company’s financial statements remain strong and competitive across both lines. In this case‚ we are asked to use this consideration of strategies to determine which company description
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INTRODUCTION The Financial Detective‚ 1996 is a case study that tests one’s financial analytical ability. Given the company’s description of its strategic and operating profile in a particular industry‚ the analysts should examine and match a particular set of common size financial data and ratios to a company’s description. In short‚ the financial practitioner must exercise due care in examining the details and fine prints of the company’s strategic and operating description‚ employing the lesson
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