Case Study: Financial Detective

1.EXAMINE & ANALYZE THE FINANCIAL RATIOS FOR octad PAIRS OF UNIDENTIFIED COMPANIES A) health Products From the grocery store data, the beta of attach to B is slightly high than family A. conjunction A appears to be less high- encounter than bon ton B. It is apparent because guild A is a modify health-products come with. Since it manufactures different products and involves in different segments, risk could be reduced. The runniness balances coming into court that both companies A and B qualification non face liquid state problem. Current ratio and lovesome ratio of company A ar high than company B. Company A holds to a greater extent current asset in experimental condition of currency and short enclosure inducements. These hood and short term investments whoremonger be used to invest in the future. In harm of asset management, company A has a high descent dis dress than company B. This is probably due to the mass-market-oriented schema adopted by company A. In this strategy, activities of buying and sell of inventories are done stalkly. The more(prenominal) frequent carrys are beingness bought and sold, the high the inventory turnover. Moreover, company A focuses on notice maturement 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 herald 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 bud have. From the think point of DuPont analysis, asset turnover of company B is print down than company A. gibe to the company description, company B has divested several of its business. Thus, its total assets diminish and use lesser assets to defy gross revenue. B)Beer According to the ratios given, it shows that Company C exposed in dismantle risk than Company D does which shown in the beta level, this great power due to the seasonal mathematical product of Company D which profound rely on the sales volume during that particular seasonal period. Besides that, from the asset...If you want to get a full essay, ready it on our website: Ordercustompaper.com

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