Selected ratios for three different companies that operate in three different industries (merchandising, pharmaceuticals, utilities) are reported
Question:
Required:
Identify the industry that each of the companies, A, B, and C, operate in. Give at least two reasons supporting each of yourselections.
Ratio Co. A Co. B 0. Gross profit margin ratio Net profit margin ratio . Research and development to sales 53% 14% 17% 4% 18% n.a 0% 0.1% 0.1% 15% 7% 0% 7% 1% Interest expense to sales. Return on assets Accounts receivable turnover Inventory tumover Long-term debt to equity 12% 95 times 5 times 1 times 9 ims 64% 3 times 45% n.a 89%
Step by Step Answer:
Company A is the merchandiser evidenced by Low gross pr...View the full answer
Financial Statement Analysis
ISBN: 978-0078110962
11th edition
Authors: K. R. Subramanyam, John Wild
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Managerial Accounting questions
-
Give at least two advantages to working with data stored in text files instead of in a binary format.
-
Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. Compare...
-
Companies that operate in different industries may have very different financial ratio values. These differences may grow even wider when we compare companies located in different countries. Compare...
-
What is the smallest (most negative) 32-bit binary number that can be represented with (a) Unsigned numbers? (b) Twos complement numbers? (c) Sign/magnitude numbers?
-
Draw and name all possible isomers of pentene.
-
Prepare budgetary and proprietary journal entries to record the following year- end adjustments: 1. An accrual of $ 60,000 was made for salaries earned the last week of September, to be paid in...
-
Verify that the Tweedie distribution is a member of the linear exponential family of distributions by checking equation (13.9). In particular, provide an expression for \(S(y, \phi)\) (note that...
-
On January 1, 2019, Parker, Inc., a U.S.-based firm, acquired 100 percent of Suffolk PLC located in Great Britain for consideration paid of 52,000,000 British pounds (), which was equal to fair...
-
Give the big O notation (as a function of n) of the running times of the following code fragment: int sum = 0; for (int j = n;j> 0; j = j / 3) sum++;
-
In TCP, can the sender window be smaller, larger, or the same size as the receiver window?
-
As a consultant to MCR Company, you are told it is considering the acquisition of Lakeland Corporation. MCR Company requests that you prepare certain financial statistics and analysis forYear 5 and...
-
The Tristar Mutual Fund manager is considering an investment in the stock of Best Computer and asks for your opinion regarding the company. Best Computer is a computer hardware sales and service...
-
Define data mining, and explain the three common forms for mining structured and unstructured data.
-
The Fast Reader Company supplies bulletin board services to numerous hotel chains nationwide. The owner of the firm is investigating the desirability of employing a billing firm to do her billing and...
-
Hand-to-Mouth (H2M) is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or take out a loan. They owe the supplier $10,000 with terms of 2/10...
-
Your firms bank has offered you two options for short-term financing in the amount of $450,000. The first option is a committed line of credit with a commitment fee of 0.4% (EAR) and an interest rate...
-
The Needy Corporation borrowed $10,500 from Bank Ease. According to the terms of the loan, Needy must pay the bank $458 in interest every three months for the three-year life of the loan, with the...
-
If Berkshire Hathaways A shares are trading at $80,000, what split ratio would it need to bring its stock price down to $40?
-
A continuous pressure filter is to yield 1.400 gal/h of filtrate from the slurry described in Prob. 29.7. The pressure drop is limited to a maximum of 50 lb /in. 2 How much filter are must be...
-
Using the information in P11-2B, compute the overhead controllable variance and the overhead volume variance. Data From Problem 11-2B: Huang Company uses a standard cost accounting system to account...
-
How many protons and how many neutrons are in (a) \({ }^{3} \mathrm{He}\), (b) \({ }^{20} \mathrm{Ne}\), (c) \({ }^{60} \mathrm{Co}\), and (d) \({ }^{226} \mathrm{Ra}\) ?
-
Sun Microsystems develops, manufactures, and sells computers for network systems. Exhibit 5.19 presents selected financial data for Sun Microsystems for each of the five years ending June 30, 2005,...
-
Exhibit 5.20 presents selected financial data for Best Buy and Circuit City for fiscal 2008 and 2007. Best Buy and Circuit City operate as specialty retailers offering a wide range of consumer...
-
Exhibit 5.21 presents selected financial data for Harvard Industries and Marvel Entertainment for fiscal Year 5 and Year 6. Harvard Industries manufactures automobile components that it sells to...
-
It is possible to form an atom out of a muon (like and electron, but with mass approximately given by 105.7 MeV/c 2 ). What would the muonic Bohr radius be? Give a numerical value, and make sure your...
-
Suppose you drop little balls of mass m on to a target marked on the floor. According to the uncertainty principle, the balls should not necessarily fall straight down even if you attempt to hold...
-
First , explain what Social Exchange Theory is and how it functions in Interpersonal Relationships. Second , describe a situation (real or hypothetical) where Social Exchange Theory is a factor in a...
Study smarter with the SolutionInn App