Identify which industry it operates in for each company (A-E) and explain the reasoning. Financial statements and

Identify which industry it operates in for each company (A-E) and explain the reasoning.
 
 
 
 
 

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Financial statements and ratios can reveal industry-specific differences in financial and operational strategies. Within an industry, companies often have similar-looking financials. For example, manufacturing companies tend to have higher PPE than those in service industries. The average period of time it takes to collect accounts receivable should be higher for banks than non-financial firms because banks offer long-term loans, whereas most companies selling goods/services require payment in 30-90 days. The goal of this assignment is to improve your understanding of financial statement analysis and ratio analysis by recognizing industry differences. Financial information for 5 companies operating in 5 different industries will be provided - including common size balance sheets (Exhibit 1), income statements (Exhibit 2), and financial ratios (Exhibit 3). These companies are well-known, publicly traded, U.S. corporations. Their financial information reflects characteristics typical of their industries. You will need to identify which of the below industries each company operates in. Financial statements and ratios can reveal industry-specific differences in financial and operational strategies. Within an industry, companies often have similar-looking financials. For example, manufacturing companies tend to have higher PPE than those in service industries. The average period of time it takes to collect accounts receivable should be higher for banks than non-financial firms because banks offer long-term loans, whereas most companies selling goods/services require payment in 30-90 days. The goal of this assignment is to improve your understanding of financial statement analysis and ratio analysis by recognizing industry differences. Financial information for 5 companies operating in 5 different industries will be provided - including common size balance sheets (Exhibit 1), income statements (Exhibit 2), and financial ratios (Exhibit 3). These companies are well-known, publicly traded, U.S. corporations. Their financial information reflects characteristics typical of their industries. You will need to identify which of the below industries each company operates in.

Answer rating: 100% (QA)

Company A Oil and Gas Explanation This company has a relatively high P PE of 12 55 of total assets which reflects the capital intensive nature of this ... View the full answer