> Question 1 O pts Beer Of the beer companies, A and B, one is a national brewer of mass-market consumer beers sold under a variety of brand names. This company operates an extensive network of breweries and distribution systems. The firm also owns a number of beer-related businesses - such as snack- food and aluminum-container manufacturing companies - and several major theme parks. Over the past 12 years, it has acquired several large brewers from around the globe. The other company is the largest craft brewer in the United States. Like most craft brewers, this company produces higher-quality beers than the mass-market brands, but production is at a lower volume and the beers carry premium prices. The firm is financially conservative. Hints: - One brewer is described as being 'financially conservative! This means they don't like leverage. Where would you see this? (It's evident in various parts of the information). - When is "Goodwill" generated? - Which companies are likelier to pay dividends, large or small ones? National Brewer is A, craft brewer is B National Brewer is B, craft brewer is A Bees ty tel:(12)%2045%200%200%200 8 7 15 9 5 7 4 0 9 A 5 3 2 3 14 14 " 0 3 2 5 19 62 4 0 25 8 7 6 46 19 0 0 3 33 100 30 10 16 0 56 33 0 7 3 25 4 39 49 7 0 4 4 15 53 0 9 23 100 2 18 0 3 23 17 0 39 21 100 Computers I 14 41 10 18 1 16 5 9 31 84 8 4 * 56 0 3 2 2 2 9 100 100 35 64 07 0 Newspapers K L 25 35 9 14 0 2 2 4 36 56 25 23 4 13 0 5 19 21 2 100 100 Airlines M N 6 10 4 2 1 1 5 4 17 16 " 10 42 75 74 0 1 28 1 13 8 100 100 Pharmaceutic O 1 13 5 11 3 10 2 2 11 35 * 3 23 0 10 u " 85 26 1 6 100 100 70 2 100 1 1 100 8 12 100 4 100 6 7 100 7 12 4 Current Liabilities-Total ASSETS (%) Cash & ST Investments Receivables Inventory Current Assets Other Current AssetsTotal Net Property, Plant, & Equipment Long-Term Marketable Securities Goodwill & Intangibles Assets Other Assets-Total ASS LIABILITIES & EQUITY (%) Accounts Payable Debt in Current Liabilities Current Liabilities Other Current Long-Term Debt Deferred Taxes LiabilitiesOther LiabilitiesTotal Stockholders' Equity Total Liabilities & Equity INCOME/EXPENSES (%) Revenue Cost of Goods Sold Gross Profit SG&A Expense R & D Exp. Depreciation & Amort. Other Operating Expense Earnings before Interest and Taxes Net Interest Expense Other Pretax Income Income Tax Expense Minority Int. in Earnings Net Income MARKET DATA Beta Beta Price/Earnings Price to Book Dividend Payout (%) LIQUIDITY Current Ratio 9 > 4 4 7 8 21 21 32 JA 9 4 4 66 66 34 100 0 11 17 1 0 9 0 3 29 71 100 5 7 7 19 17 50 3 12 83 17 1- 100 5 1 8 13 4 4 0 7 24 76 100 31 J 5 15 52 wa 13 2 14 80 20 100 17 0 20 38 wo 36 JO 0 U 15 89 11 100 2 2 4 4 + 8 15 15 14 1 1 1 18 47 53 100 10 5 38 53 We 63 0 U 43 159 (59) 100 14 28 20 18 o 8 4 4 59 41 100 4 4 0 20 24 0 0 0 5 29 71 100 4 8 12 23 10 10 19 0 U 32 66 34 100 6. 6 0 12 18 o 0 o 0 28 46 54 100 5 3 24 33 13 0 0 34 80 20 100 1 1 2 8 11 1 62 02 12 3 88 2 5. 3 19 26 20 16 16 14 6 63 37 100 4 0 19 23 22 0 13 59 41 41 100 12 100 100 (39) ( 61 (32) 0 100 ( (48) 52 ( (36) 0 100 (26) 74 (23) 0 100 (60) 40 (6) 100 100 (101) (70) (1) 30 0 100 (60) 40 0 0 5 0 3 32 100 100 100 (81) (74) (67) 19 26 33 (1) (7) (19) 00 (4) (12) 0 0 0 0 0 (0) (0) 18 14 2 (6) 0 (0) (4) (4) 0 (0) 8 15 1 0 (1) (3) 0 0 2 15 1 100 100 (63) (63) 36 37 (28) (12) 0 0 0 (13) 0 0 0 8 13 (1) 0 7 7 8 (3) (3) 0 0 0 47 0 0 30 1 0 0 16 0 (0) 16 (6) 0 10 100 (69) 31 (12) (13) 0 0 6 6 0 0 0 6 (2) 0 4 100 (39) 61 45 0 4 0 12 (2) (4) 6 (2) 0 4 4 0 (5) 0 0 (5) (12) 19 (2) 14 0 17 1 29 100 100 (23) (24) 77 76 (26) (33) (24) 0 0 (23) 0 0 25 19 (15) (0) (12) (1) 14 (1) (2) (0) 0 (3) 12 (5) (5) 16 (1) 3 18 (6) 0 11 2 44 (14) 0 30 31 (8) 0 23 23 1 0 (4) 19 0 11 0.95 24.2 4.2 88.2 0.95 34.0 3.9 0.0 1.15 1.50 1.05 27.2 9.7 nmf 1.8 1.2 25.5 91.5 0.0 0.0 1.00 19.2 6.4 197.5 1.15 59.8 0.3 0.0 1.15 24.0 nmf 29.5 0.95 12.8 5.0 21.8 1.20 22.0 2.8 0.0 0.95 nmf 0.8 (39.4) 1.15 34.9 2.7 41.8 1.20 10.0 3.9 7.9 1.10 10,9 2.4 0.0 0.75 22.9 6.1 88.7 1.15 18.3 5.5 0.0 0.64 0.41 2.01 1.35 0.99 3.48 1.08 0.63 2.49 0.77 1.04 1.02 0.30 0.72 0.43 0.37 1.11 0.90 3.50 2.45 3.17 2.82 1.53 1.45 0.52 0.31 0.60 0.44 1.53 1.03 1.04 0.62 Quick Ratio 8.5 3.9 5.9 13.0 2.2 17.6 5.8 0.6 4.6 9.3 2.5 25.3 2.4 7.7 17.8 5.5 4.9 11.7 4.1 109.7 nm 8.8 13.1 0.6 14.1 62.8 13.6 10.8 5.3 61.2 8.3 4.8 nmf 7.1 2.4 37.0 16.5 1.9 85.4 43.3 1.0 2.3 4.3 1.6 5.9 2.5 22.0 7.6 58.9 ASSET MANAGEMENT Inventory Turnover Receivables Turnover Fixed Assets Turnover DEBT MANAGEMENT Total Debt/Total Assets (%) LT Debt/Sharcholders' Equity (%) Interest Coverage DUPONT ANALYSIS Net Profit Margin %) Asset Turnover Return on Equity (%) nmf = not a meaningful figure 66.0 95.2 6.5 28.5 0.1 nmf 83.0 24.2 79.5 88.7 47.4 159.0 292.5 5.2 106.0 320.9 26.2 nmf 1.9 74.1 4.9 10.2 4.8 8.1 44.8 97.2 29.1 0.0 nmf 45.7 0.0 nmf 65.7 29.3 4.2 79.6 62.4 13.6 62.9 43.5 10.0 59.0 87.7 54.6 501.9 23.2 1.7 10.6 19.0 0.3 19.7 10.3 1.5 21.9 2.0 15.3 0.6 0.4 0.5 1.8 11.2 10.4 4.9 4.2 1.7 36.2 4.9 0.3 2.9 30.1 2.4 nmf 22.8 0.9 46.2 3.8 1.1 5.8 (6.6) 1.0 4.0 0.6 8.1 11.1 0.8 46.0 0.8 23.6 12.1 0.6 16.1 (2.8) 0.3 (5.0) (14.8) > Question 1 O pts Beer Of the beer companies, A and B, one is a national brewer of mass-market consumer beers sold under a variety of brand names. This company operates an extensive network of breweries and distribution systems. The firm also owns a number of beer-related businesses - such as snack- food and aluminum-container manufacturing companies - and several major theme parks. Over the past 12 years, it has acquired several large brewers from around the globe. The other company is the largest craft brewer in the United States. Like most craft brewers, this company produces higher-quality beers than the mass-market brands, but production is at a lower volume and the beers carry premium prices. The firm is financially conservative. Hints: - One brewer is described as being 'financially conservative! This means they don't like leverage. Where would you see this? (It's evident in various parts of the information). - When is "Goodwill" generated? - Which companies are likelier to pay dividends, large or small ones? National Brewer is A, craft brewer is B National Brewer is B, craft brewer is A Bees ty tel:(12)%2045%200%200%200 8 7 15 9 5 7 4 0 9 A 5 3 2 3 14 14 " 0 3 2 5 19 62 4 0 25 8 7 6 46 19 0 0 3 33 100 30 10 16 0 56 33 0 7 3 25 4 39 49 7 0 4 4 15 53 0 9 23 100 2 18 0 3 23 17 0 39 21 100 Computers I 14 41 10 18 1 16 5 9 31 84 8 4 * 56 0 3 2 2 2 9 100 100 35 64 07 0 Newspapers K L 25 35 9 14 0 2 2 4 36 56 25 23 4 13 0 5 19 21 2 100 100 Airlines M N 6 10 4 2 1 1 5 4 17 16 " 10 42 75 74 0 1 28 1 13 8 100 100 Pharmaceutic O 1 13 5 11 3 10 2 2 11 35 * 3 23 0 10 u " 85 26 1 6 100 100 70 2 100 1 1 100 8 12 100 4 100 6 7 100 7 12 4 Current Liabilities-Total ASSETS (%) Cash & ST Investments Receivables Inventory Current Assets Other Current AssetsTotal Net Property, Plant, & Equipment Long-Term Marketable Securities Goodwill & Intangibles Assets Other Assets-Total ASS LIABILITIES & EQUITY (%) Accounts Payable Debt in Current Liabilities Current Liabilities Other Current Long-Term Debt Deferred Taxes LiabilitiesOther LiabilitiesTotal Stockholders' Equity Total Liabilities & Equity INCOME/EXPENSES (%) Revenue Cost of Goods Sold Gross Profit SG&A Expense R & D Exp. Depreciation & Amort. Other Operating Expense Earnings before Interest and Taxes Net Interest Expense Other Pretax Income Income Tax Expense Minority Int. in Earnings Net Income MARKET DATA Beta Beta Price/Earnings Price to Book Dividend Payout (%) LIQUIDITY Current Ratio 9 > 4 4 7 8 21 21 32 JA 9 4 4 66 66 34 100 0 11 17 1 0 9 0 3 29 71 100 5 7 7 19 17 50 3 12 83 17 1- 100 5 1 8 13 4 4 0 7 24 76 100 31 J 5 15 52 wa 13 2 14 80 20 100 17 0 20 38 wo 36 JO 0 U 15 89 11 100 2 2 4 4 + 8 15 15 14 1 1 1 18 47 53 100 10 5 38 53 We 63 0 U 43 159 (59) 100 14 28 20 18 o 8 4 4 59 41 100 4 4 0 20 24 0 0 0 5 29 71 100 4 8 12 23 10 10 19 0 U 32 66 34 100 6. 6 0 12 18 o 0 o 0 28 46 54 100 5 3 24 33 13 0 0 34 80 20 100 1 1 2 8 11 1 62 02 12 3 88 2 5. 3 19 26 20 16 16 14 6 63 37 100 4 0 19 23 22 0 13 59 41 41 100 12 100 100 (39) ( 61 (32) 0 100 ( (48) 52 ( (36) 0 100 (26) 74 (23) 0 100 (60) 40 (6) 100 100 (101) (70) (1) 30 0 100 (60) 40 0 0 5 0 3 32 100 100 100 (81) (74) (67) 19 26 33 (1) (7) (19) 00 (4) (12) 0 0 0 0 0 (0) (0) 18 14 2 (6) 0 (0) (4) (4) 0 (0) 8 15 1 0 (1) (3) 0 0 2 15 1 100 100 (63) (63) 36 37 (28) (12) 0 0 0 (13) 0 0 0 8 13 (1) 0 7 7 8 (3) (3) 0 0 0 47 0 0 30 1 0 0 16 0 (0) 16 (6) 0 10 100 (69) 31 (12) (13) 0 0 6 6 0 0 0 6 (2) 0 4 100 (39) 61 45 0 4 0 12 (2) (4) 6 (2) 0 4 4 0 (5) 0 0 (5) (12) 19 (2) 14 0 17 1 29 100 100 (23) (24) 77 76 (26) (33) (24) 0 0 (23) 0 0 25 19 (15) (0) (12) (1) 14 (1) (2) (0) 0 (3) 12 (5) (5) 16 (1) 3 18 (6) 0 11 2 44 (14) 0 30 31 (8) 0 23 23 1 0 (4) 19 0 11 0.95 24.2 4.2 88.2 0.95 34.0 3.9 0.0 1.15 1.50 1.05 27.2 9.7 nmf 1.8 1.2 25.5 91.5 0.0 0.0 1.00 19.2 6.4 197.5 1.15 59.8 0.3 0.0 1.15 24.0 nmf 29.5 0.95 12.8 5.0 21.8 1.20 22.0 2.8 0.0 0.95 nmf 0.8 (39.4) 1.15 34.9 2.7 41.8 1.20 10.0 3.9 7.9 1.10 10,9 2.4 0.0 0.75 22.9 6.1 88.7 1.15 18.3 5.5 0.0 0.64 0.41 2.01 1.35 0.99 3.48 1.08 0.63 2.49 0.77 1.04 1.02 0.30 0.72 0.43 0.37 1.11 0.90 3.50 2.45 3.17 2.82 1.53 1.45 0.52 0.31 0.60 0.44 1.53 1.03 1.04 0.62 Quick Ratio 8.5 3.9 5.9 13.0 2.2 17.6 5.8 0.6 4.6 9.3 2.5 25.3 2.4 7.7 17.8 5.5 4.9 11.7 4.1 109.7 nm 8.8 13.1 0.6 14.1 62.8 13.6 10.8 5.3 61.2 8.3 4.8 nmf 7.1 2.4 37.0 16.5 1.9 85.4 43.3 1.0 2.3 4.3 1.6 5.9 2.5 22.0 7.6 58.9 ASSET MANAGEMENT Inventory Turnover Receivables Turnover Fixed Assets Turnover DEBT MANAGEMENT Total Debt/Total Assets (%) LT Debt/Sharcholders' Equity (%) Interest Coverage DUPONT ANALYSIS Net Profit Margin %) Asset Turnover Return on Equity (%) nmf = not a meaningful figure 66.0 95.2 6.5 28.5 0.1 nmf 83.0 24.2 79.5 88.7 47.4 159.0 292.5 5.2 106.0 320.9 26.2 nmf 1.9 74.1 4.9 10.2 4.8 8.1 44.8 97.2 29.1 0.0 nmf 45.7 0.0 nmf 65.7 29.3 4.2 79.6 62.4 13.6 62.9 43.5 10.0 59.0 87.7 54.6 501.9 23.2 1.7 10.6 19.0 0.3 19.7 10.3 1.5 21.9 2.0 15.3 0.6 0.4 0.5 1.8 11.2 10.4 4.9 4.2 1.7 36.2 4.9 0.3 2.9 30.1 2.4 nmf 22.8 0.9 46.2 3.8 1.1 5.8 (6.6) 1.0 4.0 0.6 8.1 11.1 0.8 46.0 0.8 23.6 12.1 0.6 16.1 (2.8) 0.3 (5.0) (14.8)