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The Case of The Unidentified Industries - 1995

The document analyzes the financial structures of 12 companies labeled Firm A through Firm K. It summarizes key aspects of each company's financial makeup, including inventory turnover, accounts receivable, debt levels, and percentages of assets related to inventory, plant/equipment, and current/long-term assets and liabilities. The companies represent various industries including banking, retail, airlines, utilities, software, and pharmaceuticals.

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kashif shakeel
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122 views3 pages

The Case of The Unidentified Industries - 1995

The document analyzes the financial structures of 12 companies labeled Firm A through Firm K. It summarizes key aspects of each company's financial makeup, including inventory turnover, accounts receivable, debt levels, and percentages of assets related to inventory, plant/equipment, and current/long-term assets and liabilities. The companies represent various industries including banking, retail, airlines, utilities, software, and pharmaceuticals.

Uploaded by

kashif shakeel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Submitted To: Mr.

Muhammad Nauman
Section D

Submitted BY: Akhtar Ali MBA (1.5)

The Case of the Unidentified Industries


1995

Firm A Commercial Bank:

The financial structure of firm (A) shows that it has zero inventory turnover
and high receivables collection period. Banks usually has a large amount of
receivables because they lend money to individual and company due to
which the average number of days, which in this case is very high, its
financial structure also show that firm has borrow money from outside to pay
the debts to its customers.

Firm D Department store chain:

The financial structure of firm (D) shows that a store department has
borrowed 38% money to finance inventory and give credit terms to its
customers. The financial structure also shows large plant and equipment of
55% and inventories of 24%.

Firm I Meat Packer:

The financial structure of firm (I) shows that inventory turnover is very high
which 47% is for a meat packer which makes sense. The financial also shows
that its accounts receivable is 28% which can be collected in one week, and
also huge plant and equipment which makes sense.

Firm E Retail Drug Chain:

The financial structure of firm (E) shows that it has more inventories than
other forms which is 43% which makes sense for such firm. It also shows that
it has zero debt ratio, and large plant and equipment percentage 37%.
Firm B Advertising Agency:

The financial structure of firm (B) shows that it has zero inventory turnovers
because it is advertising agency which provides services not production of
any product. It has high account receivable which is 55% and low plant and
equipment.

Firm F Airline:

The financial structure of firm (F) shows that it has zero inventory turnovers
because it provides services not production of any product.it also shows that
it has huge percentage of plant and equipment which is 71%. The firm has
financed by long term debt which is 40%.

Firm H Health Organization:

The financial structure of firm (F) shows that it has zero inventory turnovers
because it provides services not production of any product. It also shows it
has high return of cash and marketable securities which is 77%.

Firm C Electric and Gas chain:

The financial structure of firm (C) shows it has low inventory turnovers
because it provides services not any production.it has large percentage of
plant and equipment which is 77%. It has 81% of its revenue from electricity
sales.

Firm G Retail Grocery chain:

The financial structure of firm (G) shows that it has large percentage of
inventories, current assets, plant and equipment and long term debt.

Firm J Computer Software Developer:

The financial structure of firm (J) shows that it has zero debt ratio and low
inventory turnovers which is 2% and high cash and marketable securities
which is 67%.

Firm K Pharmaceutical Manufacturer:

The firm structure of firm (k) shows that it has high net sales, net profit, and
plant and equipment. It has high cash and marketable securities, account
receivable and inventories.

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