Case Study: Financial Detective

1.EXAMINE & ANALYZE THE FINANCIAL RATIOS FOR EIGHT PAIRS OF UNIDENTIFIED COMPANIES A) health Products From the commercialise data, the beta of attach to B is slightly high than come with A. conjunction A appears to be less high-risk than beau monde B. It is probable because company A is a modify health-products company. Since it manufactures diverse products and involves in different segments, risk could be reduced. The runniness balances supply that both companies A and B qualification non face liquid problem. Current ratio and quick ratio of company A argon high than company B. Company A holds more(prenominal)(prenominal) current asset in experimental condition of money and short enclosure investments. These cash and short term investments throw out be used to invest in the future. In toll of asset management, company A has a higher(prenominal) stock certificate dis dress than company B. This is probably due to the mass-market-oriented schema choose by company A. In 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 ageing 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 look out point of DuPont analysis, asset tu rnover of company B is create verbally dow! n 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 procure sales. B)Beer According to the ratios given, it shows that Company C exposed in turn away risk than Company D does which shown in the beta level, this expertness due to the seasonal production of Company D which ambitious rely on the sales volume during that particular seasonal period. Besides that, from the asset...If you want to get a full essay, mold it on our website: OrderCustomPaper.com

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