1. EXAMINE & ANALYZE THE FINANCIAL RATIOS FOR EIGHT PAIRS OF UNIDENTIFIED COMPANIES A) Health Products From the market data‚ the beta of company B is slightly higher than company A. Company A appears to be less risky than company B. It is likely because company A is a diversified health-products company. Since it manufactures various products and involves in different segments‚ risk could be reduced. The liquidity ratios show that both companies A and B might not face liquidity problem. Current
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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
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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‚ we will analyze some major and subsections of the financial data in Exhibit 1. Starting with the Assets section‚ Company A has higher values than company B in Current assets‚ Net Fixed assets and lower values in intangibles. The high value of company A current asset means it has a good source of fund in its day to day operations
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The Financial Detective 1. Health Products: The first firm is company A and the second firm is company B because company B has a higher gross profit and higher intangibles as seen in the financial data. This is due to the additional costs and expenses company A has in comparison to company B. 2. Beer: The first firm is company C and the second firm is company D because company C has higher fixed assets and company D has higher gross profit as seen in the financial data. This is due to firm C owning
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Tazrin Hossain UGC 112 Brian Campbell Detective Notes # 1 Arana Xajilá‚ Plague in Central America (1519-1560) The document‚ written by Arana Xajilá in 1519‚ illustrates for the reader the lasting impact and implications the plague had to the Cakchiquels tribe and the reader can then infer how the plague paved for the Spanish conquest of what is now present day South America. Arana Xajilá‚ Plague in Central America is a first person account of Arana Xajilá (also known as Francisco Hernàndez)
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Chapter 1 The Investment Environment INVESTMENTS (ASIA GLOBAL EDITION) | BODIE‚ KANE‚ MARCUS‚ McGraw-Hill/Irwin JAIN Copyright © 2011 by The McGraw-Hill Companies‚ Inc. All rights reserved. Real Assets Versus Financial Assets 1-2 • Real Assets – Determine the productive capacity and net income of the economy – Examples: Land‚ buildings‚ machines‚ knowledge used to produce goods and services • Financial Assets – Claims on real assets INVESTMENTS (ASIA GLOBAL EDITION) | BODIE‚ KANE‚ MARCUS‚
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Chapter 1 The Investment Environment 1.1. Real Assets versus Financial Assets (Page 30) Real Assets Determine the productive capacity and net income of the economy Examples: Land‚ buildings‚ machines‚ and knowledge used to produce goods and services Financial Assets Claims on real assets 1-2 1.2.Financial Assets (Page 32) Three types: 1. Fixed income or debt Common stock or equity Derivative securities 2. 3. 1-3 Fixed Income
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Investments Study Guide BOOK Review Figures: 1.1‚ 1.2‚ 1.3‚ 3.7‚ 5.3‚ 5.4‚ 6.1‚ 7.2‚ 8.1‚ 8.3‚ 8.4‚ 8.5 Chapter One Real Assets- assets used to produce goods and services (land‚ buildings‚ etc) Financial Assets- claims on real assets of the income generated (stocks‚ bonds) Fixed Income (Debt) Securities- pay a specified cash flow over a specific period of time (CDs‚ Treasury Bills‚ Treasury securities) Equity- ownership share in a corporation (pay dividends) depend on success of company Derivatives-
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Current Assets 11.2 81.7 Intangibles 22.2 46.1 Cost of Good Sold 53.9 38.5 SG&A expense 44.5 46.7 Cash & ST investments 1.4 55.6 SG&A expense 17.3 50.5 Computers Books & Music E F G H SG&A expense 9.7 23.1 SG&A expense 16.9 21.8 Intangible Assets 0 1.2 Depreciation 1.1 3.7 Inventory 2 1.3 Inventory 14.8 38.6 Accounts Payable 38.3 18 Cash & ST Investments 54.8 16.2 Current Liabilities 60.9 33.3 Quick Ratio 0 0.46 Inventory Turnover 13.56 2.42 Paper
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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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