The 9 companies are drawn from the following 9 different industries: Liquor producer and distributor Discount airline Commercial bank (items fitted into the same categories

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The 9 companies are drawn from the following 9 different industries:

  • Liquor producer and distributor

  • Discount airline

  • Commercial bank (items fitted into the same categories as the non-financial firms)

Match with the information below. and give some explanation.

  • Exhibit 1. Definitions of Some Key Financial Ratios LIQUIDITY RATIOS Cash & Marketable Securities to Total Assets = (Cash + MExhibit 2. Common-Sized Income Statement (all items scaled by sales) Company 1 2 3 4 5 6 7 8 9 Sales 100.0% 100.0% 100.0% 100Exhibit 3. Common-Sized Balance Sheet (all items scaled by total assets) ASSETS Cash & Short-Term Investments Net ReceivablesExhibit 4. Selected Financial Ratios (three-year average of values for 2011-2013) Company 3 4 1 2 5 6 7 8 9 LIQUIDITY RATIOS

  • Computer software company

  • Large integrated oil and gas company

  • The mobile phone service operator

  • R&D-based pharmaceutical manufacturer

  • Retail grocery company

  • R&D-based semiconductor manufacturer

this is all information estimate base on this info
 
 
 
 

Exhibit 1. Definitions of Some Key Financial Ratios LIQUIDITY RATIOS Cash & Marketable Securities to Total Assets = Acid Test Ratio (Cash + Market Securities) / Total Assets (Cash + Market Securities + Receivables) / Current Liabilities = Current Assets / Current Liabilities Current ratio ASSET MANAGEMENT Day's Receivable Day's Inventory Asset Turnover = 365 / (Sales / Receivables) = 365 / (Cost of Sales / Inventory) Sales / Total Assets FINANCIAL LEVERAGE Debt to Total Assets Debt to Stockholders' Equity Coverage Ratio (Total Current Debt + Long-term Debt) / Total Assets (Total Current Debt + Long-term Debt) / Stockholders' Equity (Operating Profit + Interest Expense) / Interest Expense PROFITABILITY = Gross Profit / Sales = Net Income / Sales = Net Income / Total Assets = Net Income / Stockholders' Equity Gross Margin Ratio Return on Sales Return on Assets Return on Equity DUPONT ANALYSIS Return on Equity Return on Sales * Asset Turnover * Leverage (Net Income / Sales) x (Sales / Assets) x (Assets / Stockholders' Equity) %3D

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Financial Industry Commercial banks These firms have high expectations of being granted high loans and payables have high rates of assets compared to ... View full answer

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