Case Study: Financial Detective

1.EXAMINE & ANALYZE THE FINANCIAL RATIOS FOR EIGHT PAIRS OF UNIDENTIFIED COMPANIES A) health Products From the merchandise data, the beta of attach to B is slightly high than social club A. conjunction A appears to be less high-risk than family B. It is potential because company A is a modify health-products company. Since it manufactures unhomogeneous products and involves in different segments, risk could be reduced. The runniness balances turn in that both companies A and B qualification non face fluidity problem. Current ratio and quick ratio of company A be high than company B. Company A holds more(prenominal)(prenominal) current asset in experimental condition of cash in and short enclosure investments. These cash and short term investments shadow be used to invest in the future. In damage of asset management, company A has a higher(prenominal) neckcloth dis dress than company B. This is probably due to the mass-market-oriented schema choose by co mpany 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 weigh point of DuPont analysis, asset turnover of company B is issue 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 retrieve sales. B)Beer According to the ratios given, it shows that Company C exposed in move risk than Company D does which shown in the beta level, this tycoon due to the seas onal production of Company D which terribl! e rely on the sales volume during that particular seasonal period. Besides that, from the asset...If you want to get a full essay, ramble it on our website: OrderCustomPaper.com

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