Identify the Industry—Analysis of Financial Statement Data Essay

Words: 1832
Pages: 8
Open Document
A01-14-0012

Graeme Rankine

Identify the Industry—Analysis of Financial Statement Data
Since companies in the same industry face similar opportunities and constraints, they tend to make similar invest- ment, dividend, and financing decisions. Thus, the financial characteristics of firms in the same industry tend to cluster together. For example, old economy businesses with large amounts of tangible assets may have higher leverage ratios because such assets provide good collateral for lenders. Service or trading firms may have large amounts of intangible assets such as knowledge assets or a large and loyal customer base, and, hence, have low leverage ratios because growth options can devalue quickly. On the other hand, …show more content…
Common-Sized Balanc
ASSETS e Sheet
1 (all item
2 s scaled
3 by total
4 assets)
5

6

7

8

9
Cash & Short-Term Investments 1.4% 8.7% 21.4% 17.4% 51.9% 16.6% 10.4% 3.6% 2.8%
Net Receivables 4.8% 14.2% 4.7% 11.8% 12.2% 1.9% 55.1% 3.2% 10.6%
Inventories 0.4% 21.6% 5.3% 7.6% 1.3% 2.4% 3.0% 21.5% 4.5%
Prepaid Expenses 0.4% 3.7% 0.0% #VALUE! 0.0% #VALUE! 0.0% #VALUE! 0.0%
Other Current Assets 1.4% 3.0% 4.8% 2.3% 3.8% 2.5% #VALUE! 1.0% 1.6%
Total Current Assets 8.4% 51.2% 36.1% 39.1% 69.2% 23.3% 68.5% 29.3% 19.5%
Gross Plant, Property & Equipment 98.2% 25.7% 79.8% 43.7% 15.9% 104.8% #VALUE! 85.0% 122.3%
Accumulated Depreciation -58.3% -13.5% -46.3% -21.0% -8.8% -36.5% #VALUE! -27.3% -54.6%
Net Plant, Property & Equipment 40.0% 12.2% 33.5% 22.7% 7.1% 68.3% 0.8% 57.7% 67.7%
Investments at Equity 1.5% #VALUE! 1.5% #VALUE! #VALUE! 0.0% 0.7% #VALUE! 8.4%
Other Investments #VALUE! #VALUE! 7.8% 17.3% 8.0% 0.3% 22.2% 0.0% 2.0%
Intangibles 47.6% 34.7% 19.2% 13.8% 14.0% 6.0% 3.3% 10.1% #VALUE!
Deferred Charges 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% #VALUE! #VALUE! 0.0%
Other Assets 2.6% 1.9% 1.9% 7.0% 1.6% 2.1% #VALUE! 2.9% 2.4%
TOTAL ASSETS 100.0% 100.0%
Show More

Related Documents: Identify the Industry—Analysis of Financial Statement Data Essay

Essay on A Vital Part Of Owning A Business Is Managing The Performance Of The Business

assessing the performance of your Business is by the use of Benchmark Analysis. Industry benchmarking allows for the evaluation of your business’s financial and operational performance in relation to a specific group of your peers (companies of similar size and scope operating within your industry). Benchmark Analysis is the process of comparing the performance of your business to that of similar businesses. It is only after such analysis that you can properly understand where your business is performing…

Words 337 - Pages 2

Essay about Accounting: Balance Sheet and Income Statement

Assignment 1: Business Financial Metrics Yasmine Lewis Professor B. Kariuki ACC 303 August 25, 2013 Events in the world of corporate finance during the past three years have shown the importance of transparent and accurate financial reporting by businesses. There are numerous methods for evaluating the financial well-being of a business. In this paper, I will be reviewing and evaluating the financial analysis tools available to business manager, investors, and government regulators. Compare…

Words 1680 - Pages 7

Essay about Ratio and Ratio Analysis

for comparative and ratio analysis. The use of multiple sets of data for comparison to detect trends is comparative analysis. Comparative analysis demonstrates trends within an organization. With continued use, Comparative analysis can identify diminishing trends through the use of quarterly data analysis. Ratio analysis also helps to establish trends, and make financial comparisons that assist management in making healthy financial decisions. Also, ratio analysis identifies strengths and weaknesses…

Words 532 - Pages 3

Develop Finance Strategy Management For Companies In Insurance Industry In Vietnam

for the dissertation is “Develop finance strategy management for companies in insurance industry at Vietnam”, then finding out methods to solve financial difficulties and develop financial systems of the insurance system in Vietnam. The insurance industry in developing countries like Vietnam today, there is less developed because the insurance companies are not enough financial resources and effective financial management methods. Looking at business efficiency and severe competition in the insurance…

Words 3095 - Pages 13

Finance: Financial Ratio Analysis Essay

Fundamentals, Techniques & Theory CASH FLOWS AND FINANCIAL RATIO ANALYSIS CHAPTER TWO ANALYSIS OF THE STATEMENT OF CASH FLOW AND FINANCIAL RATIO ANALYSIS “Patience is the best remedy for every trouble.” Plantus, Titus Maccius (c. 254- 184 B.C.) “Be not afraid of going slowly; be only afraid of standing still.” Chinese Proverb Learning Objective The Statement of Cash Flow provides valuation analysts with valuable information about an entity’s operating investment and financing…

Words 4704 - Pages 19

Financial Analysis Essay

for Preparation of a Financial Analysis 1. Gather information: a. Background information on the company i. Company website ii. 10-K and 10-Q reports iii. Stock price trends and analysts opinions (available on Yahoo Finance)) b. Background information on the industry i. Yahoo Finance ii. Internet search c. Background information on the general economy i. Data from Federal Reserve…

Words 473 - Pages 2

Essay on Ratio and Financial Ratio Analyisis

Ratio and Financial Statements Analysis Kimberly Y. Gruber University of Maryland University College Dr. Sunando Sengupta 07/25/2013 Turnitin Score: 23% Executive Summary The purpose of this paper is to examine ratio and financial statement analysis. Such analysis is a useful tool for managers and stakeholders to evaluate a company’s financial health in order to identify opportunities for growth and areas of weakness so as to institute corrective measures. Financial statements are used…

Words 1715 - Pages 7

Financial Ratio and Investment Banking Analyst Essay

every industry need to keep themselves informed about what’s going on in the market at every moment. Many events occurring in the markets can affect the wide variety of industries available. For example, the fall in oil prices affect the energy sector, airlines sector, financial sector, and many more. Analysts, as well as professionals, need to be informed on where competitors stand in the market, and this can be done through many services that can monitor and analyze real-time market data. One…

Words 1717 - Pages 7

Evaluation Of Financial Analysis

LUBS 3865 FINANCIAL ANALYSIS SESSION 2 OVERVIEW OF FINANCIAL ANALYSIS Objectives To introduce the framework that will be use in the module to evaluate company performance Introduction The framework adopted for evaluating the performance of a company focuses on three interrelated aspects of a firm’s performance: 1. its strategic direction 2. its financial statement performance 3 its stock market performance An analysis of a company’s performance requires a thorough evaluation of these three…

Words 2421 - Pages 10

Michael Hill International Report Including Financial, Swot, Competitors and Industry Analysis Essay

Michael Hill International Ltd. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Phone: +44 20 8123 2220 Fax: +44 207 900 3970 office@marketpublishers.com https://marketpublishers.com Phone: +44 20 8123 2220 https://marketpublishers.com Michael Hill International Ltd. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Date: Pages: Price: ID: May 1, 2016 76 US$ 499.00 M987B2B5E8ABEN Michael…

Words 1553 - Pages 7