The Financial Detective

Friday, April 17, 2009

Health products

On the basis of trade receivables , inventories, fixed assets, payables , income and the ratio of inventory turns , it seems that Company A is more important than company B. Company A received so little a budget for research and development more important. Company B would be another commercial basis by a diverse mass production sold in supermarkets .

First on trade receivables , we see that Company A owns a third more than Company B ( 12% A and 8% B). This difference can be explained by the fact that pharmaceutical products are sold in supermarkets B . However , in the vast majority of distribution a customer pay in cash, but the problem and whether supermarkets quickly reverse the revenue to the company B. The rotation of customer receivables , confirmed that company A has time shorter than company B. payment

We note with income statements of the two companies , that B has less stock that Company A ( 7% A and 5% B). This suggests that company B test up to approach the "zero stock " and that it therefore work just in time to optimize its performance more than Company A. Although the difference is that here two points. These are businesses large inventory change.

Payables of Company A are more important than company B ( 9% A and 2% B). This difference may result in a different production. Indeed the company A which favors the search for new products to appeal to different components constantly and therefore many suppliers. In contrast , Company B produces products already on the market that require fewer suppliers . One can also consider that Company B sells more volume uses more suppliers to survive their needs.

Finally, for the benefits of each , Company B sells more Current products and requires less research is more profit than Company A.

So, Company A invests a maximum in research and development and then file patents , we see that it is society that B has more intangibles .

While Company B produces and sells in volume , it must have many local and machinery , ultimately it is society that has A more tangible . Beer

In view of receivables , inventories , property , profits, liquidity, and capital taxes , it seems that Company C is more concerned with quality at the lowest cost thanks to outsourcing. Conversely Company D , would be extended to the national level through the use of a great brand and extensive distribution network target.

On trade receivables , we note that the company holds more than D claims that company C (4% for C and 12% D or 3 times ) . This may be due to the fact that the products of D are open to a wider audience since the company is active in national . Company C offers products developed as more seasonal limiting customers. Rotation receivables, shows a faster turnaround for D.

It is noted that Company C has substantial assets as intangible assets that contrary to Company D (55% for C and 16% for D , C 7% and 1% for D). Presumably Company D has a significant distribution network and therefore significant tangible assets.

We also note that the C corporation is taxed ten times that society D. This is due to the outsourcing operation that includes a number of tax on imports and exports . But in this case the big companies are better able to optimize their taxes to know about this field.

Given the liquidity ratio , we see that the C corporation to a need for significant funding , which may be due to outsourcing to reduce production costs . This can be borrowed from financial institution or seek new investors.

Finally, the profit , we observe that the D company , which sells branded products at the national level in an expanded distribution network , making more profit the company C. In fact, this company sells a range of more specific product at a higher cost and smaller volume, which makes the exceptional product and therefore more expensive given the novelty . Computers:

We can differentiate the two companies through the text for several reasons:

On the one hand we can say that the company F is now opting for diversification of its products with larger market share because these profits are more important than the company that sells only E mail (via Internet )

On the other hand we noticed that Company F was greater than E due to its more developed network marketing margin . Indeed the company E restricted customers to " net surfers " which limits the target

More Company E has a turnaround time of less than F stocks , which expresses the fact that the company operates the E command. It has a still larger stock consisting of detail parts but these are shorter than the machines finished by now F because they are finite objects . Thus, the two entities have a stock but comparable strategy E allows them to have a period of rotation of lower stocks.

Finally, we can notice a deficiency within receivable turnover of the company E where less important than the company F. Indeed stock availability, sales system ( by correspondence) implies that products manufactured requires sending to a purchaser who will pay the amount of the invoice once the goods have been delivered . This induces a flow ( level of availability ) lower for this company. Following this idea we will notice that the debts of the company is more important than E Company F which fully develops all parts. Company E therefore more debt because of constantly buying parts seconded to develop the finished product.

Thus according to the study conducted the first paragraph corresponds to F and the second company to company E.

Book and Music :

From the text we quickly noticed that the company G is that sells books and CDs on the Internet while H would be one that sells in stores.

The first clue that puts us on this path is that the company H to need much larger stocks so as not to fall out of stock in stores.

The second track is the fact that H has a much larger than G. immobilized heritage this induces that H has a lot more furniture , local , and other than G as the first needs a location and other accessories for the operation of its business. Regarding intangible trend is similar. We can assume that the company H leader on the market of selling books and music has many licensing and patent which explains the "intangible" of both companies position ( 4 G and 11 H ) .

Once again the company G would be one that sells interning because of the much higher trade payables than H. This could correspond to different advertising campaigns to carry out their aggressive strategy to gain market share their competitors. ( 107 G and 69 H which confirms this theory).

Regarding the ratio of total debt / total assets The Company G has a much higher than the company H. It has much more debt and the company H has more assets ratio. Company G correspond to the company that sells on the Internet that has few assets and is indebted for its strategy. While the company H correspond more to the company that sells in stores because it has many active and does not need to invest with its discount concept and simple maintained on the Internet.

Finally, regarding the long-term debt ... This indicator PROVEN us well as the company G is one that sells on the Internet to start to need to take a certain number of credits in order to maintain its purchasing strategy. Company H and better established leader in their field does not need to borrow to make a profit at the end of the year.

Thus according to the study conducted the first paragraph corresponds to H and the second company to company G

Paper Products :

We readily note that the company J is the largest production company in view of several indicators.

First we note that it has a much larger stock that the company which I explained that the company 's ability to produce more than its competitor thanks to its land it owns.

On the other hand , in terms of the capital J has more business machines now I which indicates a larger size than the latter . Indeed the largest production company in need of a larger level to ensure its typical production input.

Moreover, if we look at the long-term debt we notice a marked difference . 41.3 Company I, and 18.3 for the company J. Again this indicator shows that the company J is the largest production company. In fact its brand image and that of these products is not redone. Therefore it does not need to borrow large sums in order to develop. On the other hand I now a strong need for capital in order to develop the best compete .

Ratio is consistent with the previous indicator . Indeed, the " long-term debt / equity " ratio shows that the company I did not have enough capital to finance its activity because of its small size is the giant J. In fact, this company is obliged to into debt and therefore has a very high ratio. What is a hazard. Generally all small businesses borrow to finance their activity which explains the ratio found .

Finally we turn our attention to the post SG & A. This indicator goes in the same direction as the other . So now I corresponds to the small producer for a higher position expresses the fact that its staff is more expensive ( proportionnelement turnover ) J that the company has a much higher turnover. This therefore indicates that the company is the largest producer J and vice versa now I little .

Thus according to the study conducted the first paragraph corresponds to the company J and the second company I

Hardware and Tools

In this section, we will deal business K and L. The beginning of the paragraph speaks of a company that manufactures and distributes electronic materials and tools to wholesalers , distributors and retailers. There is no contact with the final consumer. The products cater to a specific clientele and are part of a renowned brand . The second company recounted manufactures and distributes quality products that cater to professionals. A wide range of products is given . These are distributed by the own distribution

network of the company. Here there is direct contact with the final consumer . Funding is awarded to partners and large orders.

If we rely on the information collected in the text , the first paragraph seems to treat the company L. Indeed , the company does not work with individuals it deals therefore that large orders . It therefore provides payment deadlines . The item " Receivables " indicates 23.7 against 18.9 K L because it finances large orders and franchises. It is therefore normal that the position is less important.

The company working only with redustributeurs , it has a larger than its competitor which deals with so-called " final consumer" people CA . the sales taxes are therefore directly affected . The balance for K is 3.0 . It is two times greater than that of L.

Finally , the item " LT debt" to present a balance of K two times higher than that of L , namely 21.7 and 8.9 respectively . This difference is justified by the fact that the company K offers quality products. It must make the R & D to be at the forefront of technology. For the second company , the position must correspond to capital purchases . Machinery, premises, transport equipment ...

Relating to the study of the text, the first section deals with the company L, the second K.

Here we will discuss the companies M and N. The first part of paragraph informs us that the company is national in scope . the product range presented is relatively large . Both companies offer low prices (discount ) . The first is located near the storage facility , with a policy of intensive development in the territory and abroad . The second company is cheap but high quality products. The proposed prices are still lower than those of pus competition. Discounts are given on large orders.

For the post of LT debt , the enterprise of the first paragraph has a pus important that the second balance to the extent that it grows extensively. The balance is 28.00 to 19.7 N against Mr. balance M is called normal management . This is discussed in the first paragraph.

One of the two companies has a positive balance for the position " Noneoperating Incomes ." it is obviously now that M has realized the sale of some of its stores as it considered charging prices too high. Which is why this post has a balance of 0.8. The sale of these shops is in order to keep prices down across the distribution network.

Finally, one firm has a strategy based on volume. It is normal that customers are demanding payment periods for large orders . For this post, N has a balance more than 10 times higher than that of M namely 17.00 against 1.4 . The second has a smaller balance because it is just beginning to practice a policy of customer credit .

The first company and M , the second N. Newspaper

For this last part , companies O and P are highlighted. Both companies are competing in the world of journalism. For the first paragraph , the company is international , the second in a local network . One of the two has a central product, certainly enough renamed. The second kind is the holding company because it has several different but new logs on the local territory. In this sector, competition is fierce , as to retain customers for 're advertising revenue.

We can see that the company told in the first paragraph is only to build an asset of such building to house the headquarters and offices. It makes sense to find a difference in balance at the tangible fixed assets . Indeed , the company has a P amount of more than twice that of O. They were respectively 34.6 and 14.1 .

The reverse is supposed to check . The second condition a holding company , it is largely composed of intangible and has no real liabilities. The position of intangible assets has a balance of 78.6 against 37.1 for P O , which is in line with what we said above.

Finally, the enterprise of the first paragraph is P , the second is O