Question
Column E manufactures a highly differentiated group of personal computers, software, and consumer electronics. Look at cash and short-term investments, receivables percentage and turnover, inventory
Column E manufactures a highly differentiated group of personal computers, software, and consumer electronics.
Look at cash and short-term investments, receivables percentage and turnover, inventory percentage and turnover, long-term marketable securities, long-term debt, dividend payout ratio, and other ratios and line items.
How will these ratios help you determine the firms strategy?
Column ratios of analysis:
Cash & ST Investments: column E = 14, column F = 41
Inventory: column E = 1, column F = 16
Inventory Turnover: column E = 62.8, column F = 3.9
Research and Development (R&D): column E = 3, column F = 13
Net Income: column E = 23, column F = 4
Dividend Payout: column E = 21.8%, column F = 0%
Long Term Debt: column E = 18, column F = 0
Net Profit Margin: column E = 22.8%, column F = 3.8%
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