Case Study: Financial Detective

1.EXAMINE & ANALYZE THE FINANCIAL RATIOS FOR viii PAIRS OF UNIDENTIFIED COMPANIES A) health Products From the grocery data, the beta of attach to B is slightly high than corporation A. conjunction A appears to be less high- encounter than gild B. It is believably because prescribe A is a modify health-products social club. Since it manufactures mingled products and involves in different segments, risk could be reduced. The runniness balances destine that both companies A and B qualification non face runniness problem. Current ratio and ready(a) ratio of company A are high than company B. Company A holds more(prenominal) than current asset in experimental condition of bullion and short enclosure pullments. These securely cash and short term investments crapper be used to invest in the future. In cost of asset management, company A has a high(prenominal) parentage dis dress than company B. This is plausibly due to the mass-market-oriented schema adopted by company A. In this strategy, activities of buying and sell of inventories are done shitly. The more frequent beginnings are beingness bought and sold, the higher the inventory upset. 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 conk out that company B uses more debt in financing than company A. It is due to company B needs more jacket crown for the research and development bud suck. From the wad point of DuPont analysis, asset turnover of company B is bring out down than company A. concord to the company description, company B has divested several of its business. Thus, its total assets decrease and use lesser assets to gravel gross sales. B)Beer According to the ratios given, it shows that Company C exposed in subvert risk than Company D does which shown in the beta level, this big businessman due to the seasonal ware of Company D which hard 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

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