Question
The following data comes from Company A and B: Company A Company B Operating assets 20,000 60,000 Financial assets 60,000 20,000 Operating liabilities 30,000 10,000
The following data comes from Company A and B:
|
| Company A | Company B |
| Operating assets | 20,000 | 60,000 |
| Financial assets | 60,000 | 20,000 |
| Operating liabilities | 30,000 | 10,000 |
| Financial liabilities | 10,000 | 30,000 |
(1) Calculate NOA and NFA.
(2) What strategies of these two companies may be?
(3) Which company may have higher risk? Why?
(4) Which company may have higher competitive advantage? Why?
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
