1. Identification of the company being described

Company A: Manufacturer of toiletries, non-prescription drugs, and consumer and baby care products.

Analysis:

· Compared with Co. B, Co. A has a higher gross margin equivalent to 63.1 percent.

Company B: Manufacturer of pharmaceuticals and low-margin hospital supplies.

Analysis:

· Goodwill can be seen on the other assets portion of the balance sheet. Co. B has a significant amount of other assets (40.6 %).

· Compared to Co. A, gross profit is 36.0 percent.

Company C: Marketer of high quality washers, dryers, dishwashers and refrigerators in its own name.

Analysis:

· High quality can be associated with high sales price of goods. Co. C has a higher Sales / Assets ratio equal to 223.0 percent.

· Cost of good sold is lower (72.8%) as against (79.8%) which may explain that manufacturing and selling under one brand name has a lower manufacturing cost.

Company D: Marketer of the same products under 3 different brand names.

Analysis:

· The company has a higher cost of goods sold (79.8 %) which may explain that manufacturing and selling one product under 3 brand names would require higher cost of goods sold.

Company E: Manufacturer of large mainframe computers.

Analysis:

· This company offers financial services aside from the manufacture of mainframe computers. Receivables comprise 18.7 percent of total assets which is significant in financing type of business.

· Financial services reflect other income for the company in the form of interest income which is 2.7 percent of total revenues generated.

Company F: Manufacturer of supercomputer systems for scientific applications.

Analysis:

· Output of the units were relatively small but the price is highest in the industry. Cost of goods sold is only 35.7 percent gross margin is 64.3%.

· Because the supercomputers were used for research, R&D expense of Co. F is 15.8 % of sales.

Company G: Discount store - wholesaler

Analysis:

· Inventory is large – 51.7 percent which is typical of wholesaler of goods.

· Receivable is only 1.9%.

· Days’ Receivables is only 2.

Company H: Credit-based department store.

Analysis:

· Receivables is 34.7 %

· SG&A is 97.1% (all of it operating expenses) may explain the nature that it leases it properties being used.

· Days’ Receivables is 196.

Company I: Semiconductor company with the defense industry as its main client.

Analysis:

· Compared with Co. J, total current assets is only 50.9% as against 60.2% which represents that it is less financially conservative.

Company J: Semiconductor manufacturer with radios and television equipment as

its primary product specialization.

Analysis:

· Compared with Co. I, total current assets is 60.2%, 15.6 % of which is on cash & equivalents. This means that the company is financially conservative.

· Aside from semiconductor manufacturing, it is also involved in manufacturing of television and radio equipment. Which will explain the other income of 3.9%.

Company K: Operator of high quality hotels and motels.

Analysis:

· Long-term debt is considerably lower (21.6%) than Co. L (46.5%).

Company L: Largest food contractor in the country. Its financing is through off-balance sheet limited partnerships.

Analysis:

· Long-term debt is 46.5% which justifies that much of its hotel operations are financed by other parties on long-term basis.

· Long-term debt/equity is 308%.

Company M: Newspaper company that owns a number of small newspapers throughout the Midwest.

Analysis:

· Broadcasting is a secondary line of business that accounts for the other income percentage of 11.8 percent.

· Has significant amount of goodwill stemming from acquisitions. Other assets – 61.7%.

Company N: Large flagship newspaper that sells all over the country and the around the world.

Analysis:

· Other assets is lower – 25.2%.

· Because it is a big newspaper company that sells its product around the country and the world, its net properties, plant and equipment is significantly higher at 56.2%.

Company O: Trucking and freight-forwarding company

Analysis:

· The SG&A is high at 86.1% and is composed of purely operating expenses, which is typical for a freight forwarding company.

Company P: Railroad company.

Analysis:

· 20% of revenues was said to be derived from real estate business which will reflect on the company’s receivables – 18.7%

· Sales assets = 191% which reflects that it has diverse and high selling products like real estate.

Word Count: 716