Company 2 is a well-diversified heath product company including products in non-prescription drugs, health and beauty products and medical diagnostics devices. Significant parts of their mass market oriented strategy include: management and brand development.
By analyzing the financial ratios for company A and B, we can tell that company A has a better state of financial health based upon their beta, current ratio, inventory turnover and total debt/total ratio. The highest net profit margin occurs in heath products. By analyzing the intangibles section, …show more content…
Company B has higher ratios in the categories of Intangibles, Investments and Advances (46.1% and 3.1%) This indicates that company A has a big production facility, and they have access to cash from the sale of side divisions. Company B has a larger ratio of their assets in the category intangibles, which could include proprietary rights from the large amount of items they sell. Company 1 is B and Company 2 is A.
Beer
Company 1 is considered to be a national brewer of mass market consumer beer. They own many brand names, beer related business and several theme parks.
Company 2 prices are higher and have a smaller production volume. Most of the brewing is outsourced, and they are considered to be financially conservative. To counteract the increase in fright and packaging costs, they have participated in a cost savings …show more content…
Company 1 is letter E and Company 2 is letter F.
Books and Music
Company 1 has a large retail store appearance. They are the industry leader in traditional book retailing. They maintain an online store and own a publishing imprint.
Company 2 sells a big selection of media items online. They obtain more than three- fourths of sales from the media and the rest are electronics and other goods. This firm has recently been able to make a profit and has been able to get related online businesses in the past couple years.
By analyzing the statements, we can tell that the net fixed assets and inventories categories are much larger for H. This indicated that Company 1 is H because they have more inventory in their stores rather than online, which allows them to have better control of their inventory. Looking at the long-term debt, we can see that G has a large amount of debt, which can be a result of