The Financial Detective
Friday, April 17, 2009
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 ...view middle of the document...
While Company B produces and sells in volume , it must have many local and machinery , ultimately it is society that has A more tangible .
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 .
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...