As the dominant player on a larger scale, P may be unable to grow through strategic acquisition. Company F has a higher receivables turnover, which reflects the fast payments made by consumers in the form of credit card purchasers.
Also the low profit margin is indicative of a Financial detective essay like Barnes and Noble because they pay full price on shipping and storage costs since they are a standard retailer, thus minimizing profits. This is shown in the relatively lower net profit margin.
Company C also has higher fixed assets due to its other holdings such as theme parks. Also inventory should be relatively low because they are an online company and everything is ordered and shipped in a relatively quick fashion.
The distinctions between the firms arise primarily from their scale and scope. Their high intangibles accounts for their various trademarks also. By analyzing the financial reports, potential investors make investment decisions.
However, Dell purchases many of its products manufactured by its many suppliers which is why they have a high accounts payable.
This could explain why they have a lower fixed asset percentage. Because the company has a volume oriented strategy, with large quantities of stock and customers, it would have a larger turnover of 7.
Paragraph two is most likely Company G which is probably Amazon. Company N I believe company N is the second paragraph and is the company Target. Cost of goods sold is lower because they produce more over the counter products that do not require any further extensive research.
The cost of goods for Johnson and Johnson Because high research and development is spent on research and development, the price of pharmaceuticals are high. Company D has higher gross profit, consistent with the premium pricing of its specialty brews versus the mass-marketing approach that was taken by company C.
This is because Barnes and Noble would need more inventories on hand which would go hand-in-hand with the large inventory percentage.
Company E is Dell, clearly because they exclusively do mail-order and built-to-order PCs allowing its customers to design their own products. Intangibles make up a large percentage of total assets, which would explain the significant amount of goodwill.
General purpose financial reporting basically provides the financial information about the reporting entity useful for existing and potential investors, Do to limited income they did incur a lot of debt so this would make sense. How to cite this page Choose cite format: This would make the turnover ratio for Johnson and Johnson 3.
Because their wood is purchased on the open market, they would have higher long-term debt and liabilities. Paragraph 2 is most likely Company E. Many customers pay with credit at Costco, with members paying with their Costco card, which would explain the very high Receivables turnover at This strategy also allows Dell to have a high inventory turnover and keep smaller amount of inventories on hand.
Company F is Apple as it has a higher Beta than Dell due to its dramatic decline in market share making it more risky than the rest of the market. Company F has a lower COGS percentage, which reflects both its premium pricing and the lower cost associated with software production.
Company D has much lower net fixed assets since much of their operations are outsourced.
Company N has relatively lower COGS percentage, reflecting its fuller price for designer-made products. Company D is Boston Beer because they have such a smaller net profit margin due to their smaller production in volume.
On the other hand, company L primarily sells its merchandise to large retailers, which may have more regular payment schedules. Company J carries more than twice the rate of company I, which may be the case due to its smaller size it requires the firm to carry a higher proportion of inventory in order to satisfy its demanding customers.From the case study of The Financial Detective, the objective is to place the correct company to match the given financial data and ratios.
Case 6: The Financial Detective MBA Group 2 Introduction Financial characteristics of companies vary both from industry to industry and within a single industry for a variety of reasons. The challenge for any company in planning its strategy is the consideration of the industry’s economics in conjunction with their own strategy to help the company’s financial statements remain.
Free Essay: [The Financial Detective Introduction Each industry is distinctive. One might be unique in its high fixed assets; other would be. Read this essay on Financial Detective. Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more.
Only at ultimedescente.com". Company A has a far quicker inventory turnover than company B. Company B sells almost exclusively to institutions and pharmacies, which usually take longer to exhaust their supplies compared to company A, who markets its consumer products to retailers, which have a higher turnover orientations.
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