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Financial Detective 2016 from Book of principles of Managerial Financial
Typology: Exercises
Uploaded on 11/19/2019
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Financial Management Class
Member: 29118302 - Arif Widya S 29118343 - Fandy Alim 29118350 - Dwi Al Aji Suseno 29118370 - Idam Faisal Rahman
Management Business and Administration Sekolah Bisnis Manajemen Institut Teknologi Bandung Bandung 2019 Airlines
Company A's ROE (46%) is higher than Company B (23.6%) because Company A makes operational efficiency. The operational efficiency of Company A shows in NPM 11.1%. Market data shows that dividend payout of Company A are 7.9% and Company B is 0% because the company B needs money to acquire the largest airline in the US so they can not give dividend. If we look at inventory turnover at Company B 85.4% because they have oil refineries to supply operations.
Beer Company D's ROE (21.9%) is higher than Company C (19.7%) due to Company D's assets turnover of 1.5%, where Company D is the largest craft brewers in the US and builds high quality beer with premium prices. Company C has high a Long Term Debt because they need money to acquire several large brewers over 12 years. Company D's Current Ratio is higher by 25.3%, where Company D's current assets are high because they have the largest craft brewers and Company D's current liabilities are low because the company is financially conservative.
Computers From common-size financial data and ratios :
Company E sells personal computers as well as handheld devices and software. the firm has been able to differentiate itself by using its own operating system for its computers and by creating new and innovative designs for all its products. these products carry premium prices domestically and globally. It represents from financial data :
Company F sells high performance computing system and financially conservative. It represents from its financial data :
Hospitality From common-size financial data and ratios :
Company G maintains market presence by owning all of its properties, which contributes to the high recognition of its industry-leading brands. It represents from financial data :
Since the long term debt of coal powered electric power plant is higher, the equity structure is higher than coal powered electric power plant M (17%) vs N (76%). Based on explanation above debt management also has a significant difference.
Retail Leading e-commerce (O) compared to leading retailer in apparel and fashion (P):
Leading e-commerce has lower inventory (O 16% vs P 25%), and has higher AP (O 31% vs P 17%) and higher receivable (O 10% vs P 13%) since the typical of e commerce that the stock is arranged by supplier and in leading retailer, it arrange stock/inventory by itself. Leading e- commerce has lower long term debt (O 13% vs P 36%) because leading retailer need more money to invest in fixed asset (O 33% vs P 49%)
Leading e-commerce has R&D Cost (O 12% vs P 0%) since the innovation is a must, it competes with another high tech e-commerce company. The leading retailer doesn’t need R&D but higher SG&A expense (O 19% vs 28%) to cover it sales and general expense.
