Learning Lab#$2$ Practice Data Detective exercise

In this exercise we are given three $(3)$ company profiles and three $(3)$ sets of financial data.

Required: Submit your choices $($which column is what company$)$ and include your rationale.

Law Firm

This is a medium$-$sized law firm providing a range of legal services to corporate and individual clients. The firm specializes in areas such as corporate law, litigation, intellectual property, and real estate. It operates with a lean organizational structure, focusing on delivering high$-$value advisory services rather than physical goods. The firm's revenue comes from billable hours and retainers, and it relies on its team of attorneys to generate income. With a strong emphasis on client relationships and expertise, the law firm focuses on building long$-$term partnerships with businesses and high$-$net$-$worth individuals.

Fast Food Restaurant

This is a quick$-$service restaurant chain that specializes in serving affordable and convenient meals such as burgers, fries, and beverages. The business model focuses on high$-$volume, low$-$cost production with standardized menus. Most locations operate as franchises, leveraging brand recognition and efficient supply chains to maximize profits. Their revenue primarily comes from in$-$store sales, drive$-$thru orders, and increasingly, online delivery services. The restaurant competes in a fast$-$paced industry driven by consumer demand for convenience and value.

Mining Company

This large multinational mining corporation specializes in the extraction and processing of natural resources, such as minerals, metals, and coal. Its operations are highly capital$-$intensive, requiring substantial investment in heavy equipment, technology, and infrastructure. The company operates in multiple regions, often in remote or resource$-$rich areas, with a focus on long$-$term exploration and development projects. Revenues are driven by the global demand for raw materials, and the company is exposed to fluctuations in commodity prices, regulatory changes, and environmental concerns.

These descriptions offer a clear sense of each company's core business model and operational focus.

Financial Ratios

#$1$

#$2$

#$3$

Current Ratio

$1\mathrm{.}5$

$1\mathrm{.}2$

$2$

times

Inventory Turnover

$8$

$1\mathrm{.}5$

$0\mathrm{.}5$

times

Debt to Equity Ratio

$30\%$

$150\%$

$40\%$

Return on Assets $($ROA$)$

$10\%$

$5\%$

$15\%$

Profit Margin

$20\%$

$15\%$

$30\%$

Return on Equity $($ROE$)$

$25\%$

$12\%$

$18\%$

Equity

$40\%$

$70\%$

$50\%$

Operating Margin

$18\%$

$12\%$

$28\%$

Working Capital Ratio

$1\mathrm{.}5$

$1\mathrm{.}2$

$2$

times