Case Study: Financial Detective

1.EXAMINE & ANALYZE THE FINANCIAL RATIOS FOR EIGHT PAIRS OF UNIDENTIFIED COMPANIES A) health Products From the trade data, the beta of attach to B is slightly high than ac family A. conjunction A appears to be less high-risk than company B. It is likely because company A is a modify health-products company. Since it manufactures assorted products and involves in different segments, risk could be reduced. The runniness balances raise that both companies A and B qualification non face liquid state problem. Current ratio and quick ratio of company A are high than company B. Company A holds to a greater extent(prenominal) current asset in experimental condition of cash in and short enclosure investments. These cash and short term investments rotter be used to invest in the future. In toll of asset management, company A has a higher(prenominal) lineage dis dress than company B. This is probably due to the mass-market-oriented schema take by company A. In th is 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 development 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 great deal point of DuPont analysis, asset turnover of com pany B is release down than company A. Acc! ording to the company description, company B has divested several of its business. Thus, its total assets decreased and use lesser assets to get down sales. B)Beer According to the ratios given, it shows that Company C exposed in debase risk than Company D does which shown in the beta level, this qualification due to the seasonal production of Company D which hard-fought rely on the sales volume during that particular seasonal period. Besides that, from the asset...If you want to get a full essay, identify it on our website: OrderCustomPaper.com

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