Case Study: Financial Detective

1.EXAMINE & ANALYZE THE FINANCIAL RATIOS FOR EIGHT PAIRS OF UNIDENTIFIED COMPANIES A) health Products From the grocery store data, the beta of attach to B is slightly high than federation A. conjunction A appears to be less high-risk than accompany B. It is seeming because company A is a modify health-products company. Since it manufactures different products and involves in different segments, risk could be reduced. The runniness balances bespeak that both companies A and B qualification non face liquidity problem. Current ratio and quick ratio of company A argon high than company B. Company A holds much current asset in experimental condition of immediate payment and short enclosure investments. These cash and short term investments bum be used to invest in the future. In footing of asset management, company A has a higher(prenominal) enumeration dis dress than company B. This is probably due to the mass-market-oriented schema adopt by company A. In this strategy, activities of buying and sell of inventories are done frequently. The much frequent stocks are beingness bought and sold, the higher the inventory turnover. Moreover, company A focuses on notice ripening and management. It is believed that another reason for the higher inventory turnover is likely due to the efficient stock management salutary by company A.

Debt management ratios reveal that company B uses more debt in financing than company A. It is due to company B needs more capital for the research and development budget. From the opinion point of DuPont analysis, asset turnover of compan y B is save down than company A. According! to the company description, company B has divested several of its business. Thus, its total assets decreased and use lesser assets to give sales. B)Beer According to the ratios given, it shows that Company C exposed in pass up risk than Company D does which shown in the beta level, this magnate due to the seasonal worker production of Company D which grueling rely on the sales volume during that particular seasonal period. Besides that, from the asset...If you want to get a full essay, high society it on our website: OrderCustomPaper.com

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