Case Study: Financial Detective

1.EXAMINE & ANALYZE THE FINANCIAL RATIOS FOR EIGHT PAIRS OF UNIDENTIFIED COMPANIES A) health Products From the food market data, the beta of attach to B is slightly high than caller-up A. conjunction A appears to be less high-risk than caller-out B. It is belike because company A is a modify health-products company. Since it manufactures miscellaneous products and involves in different segments, risk could be reduced. The runniness balances install that both companies A and B qualification non face fluidness problem. Current ratio and quick ratio of company A atomic number 18 high than company B. Company A holds to a greater extent current asset in experimental condition of cash in and short enclosure investments. These cash and short term investments fuel be used to invest in the future. In wrong of asset management, company A has a high register dis dress than company B. This is probably due to the mass-market-oriented schema adopt by company A. I n this strategy, activities of buying and sell of inventories are done frequently. The more frequent stocks are beingness bought and sold, the higher the inventory turnover. Moreover, company A focuses on notice ontogenesis 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 take point of DuPont analysis, asset turnover of compa ny B is pen 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 contract sales. B)Beer According to the ratios given, it shows that Company C exposed in humble risk than Company D does which shown in the beta level, this mightiness due to the seasonal worker production of Company D which arduous rely on the sales volume during that particular seasonal period. Besides that, from the asset...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper