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As an investor, would you choose to invest in the Hospitality Industry, the Newspaper Industry, or Pharmaceuticals, given the information, and why? Computers: Cash -
As an investor, would you choose to invest in the Hospitality Industry, the Newspaper Industry, or Pharmaceuticals, given the information, and why?
Computers: | |||
Cash - F has higher cash, more conservative. | |||
Receivables - F has more rceivables as it sells a high cost product to govt. | |||
Inventory turnover: E only keeps finished goods, as it outsources manufacturing. | |||
Long-term marketable securities: E has cash as an asset. | |||
Long term debt: F has no long-term debt. | |||
Net income: E has innovative products with high net income margin. | |||
Dividend payout: F has 0 dividend payout. | |||
Hospitality: | |||
Net PP&E: G has higher PP&E as it owns hotels. | |||
Goodwill: H has higher intangibles. | |||
Stockholder's equity: H shows negative equity due to share-repurchase. | |||
Receivables: H has more receivables. | |||
Receivables turnover: H is low, as it pays employs and bills hotel owners which | |||
forms accounts receivable. | |||
Asset turnover: H has high asset turnover. | |||
Net income: H has a higher profit margin. | |||
ROE- ROA and ROE are higher for H. | |||
Newspapers; | |||
Cash: Both have high cash balances. I has a large balance of long-term market securities. | |||
Goodwill and Intangibles: J has a 14% higher intangibles percentage. | |||
Stockholders' equity: J is more conservatively financed. | |||
Gross profit: J struggles with higher cost of goods sold, due to high employee wages. | |||
SG & A expenses: J has 0 S G & A expenses. | |||
Fixed Asset Turnover I is located in an expensive New York City location. | |||
Pharmaceuticals | |||
Goodwill and Intangibles: K has a higher intangibles percentage from acquisitions. | |||
Long-term debt: K has more debt due to acquisitions. | |||
R & D: L makes investments in new drugs. K acquires proven drugs. | |||
Net income: L has many new drugs, and a strong profit margin. | |||
Interest coverage ratio: K has difficulty meeting interest payments. |
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