10 Industries Comparison
1. The book store chain keeps high inventory, high plant and equipment assets, and profit per revenue is low. 2. Commercial bank has an extremely high accounts receivable and the longest receivables collection period. And their biggest part of liabilities is notes payable. It really meets the features of Commercial bank.
3 Computer software developer sells most of their products online and direct to customers, so most of their sales and transaction online. This explains the high receivable collection period because most of their transactions can be bought with their own business credit card and that will take up to 1 month for it to be received.
4 Department stores has their long-term debt stands outs it shows that this department store must borrow a lot of money to finance their inventories and buildings. They have an average inventory turnover rate which means that they currently efficient. This firm overall is at a good pace and its generates a lot of asset. Its shows little signs of any deffieciency except for the many long term debts- and account payable.
5 The restaurant chain has the very high inventory turnover, typical for a restaurant. The plant-equipment assets are high and the accounts receivable are low.
6 The health maintenance organization has low plant-equipment and no inventory and accounts receivable are very high. Also revenue per assets is high which is typical for a medicine company.
With common sense, we know that HMO will have a longer Receivables collection period (They provide the service first and wait for the insurance company to pay for their service fee).
7 The online book seller has high inventory turnover but at the same time keeping low inventory, high cash and long term debt.
8 Online direct factory to customer personal computer vendor- Most of their business is sales to businesses, and manufacturing are outsource. This means most of their transactions are done online. All of their business is
3 Computer software developer sells most of their products online and direct to customers, so most of their sales and transaction online. This explains the high receivable collection period because most of their transactions can be bought with their own business credit card and that will take up to 1 month for it to be received.
4 Department stores has their long-term debt stands outs it shows that this department store must borrow a lot of money to finance their inventories and buildings. They have an average inventory turnover rate which means that they currently efficient. This firm overall is at a good pace and its generates a lot of asset. Its shows little signs of any deffieciency except for the many long term debts- and account payable.
5 The restaurant chain has the very high inventory turnover, typical for a restaurant. The plant-equipment assets are high and the accounts receivable are low.
6 The health maintenance organization has low plant-equipment and no inventory and accounts receivable are very high. Also revenue per assets is high which is typical for a medicine company.
With common sense, we know that HMO will have a longer Receivables collection period (They provide the service first and wait for the insurance company to pay for their service fee).
7 The online book seller has high inventory turnover but at the same time keeping low inventory, high cash and long term debt.
8 Online direct factory to customer personal computer vendor- Most of their business is sales to businesses, and manufacturing are outsource. This means most of their transactions are done online. All of their business is